New York Court Extends Asset Freeze to Aid Singapore's Multichain Liquidation

A New York court has temporarily extended a freeze on three Ethereum wallets containing approximately $63 million in USDC stablecoins, supporting Singapore liquidators of collapsed crypto bridge Multichain in their efforts for recognition in the U.S. The order, issued by Judge David S. Jones, mandates Circle to maintain the asset freeze to prevent potential harm if the freeze is lifted. A related class action by U.S. investors seeking access to the same funds is currently paused pending review of whether the Singapore liquidation qualifies as a 'foreign main proceeding' under Chapter 15 of the U.S. Bankruptcy Code. If recognized, this would allow Singapore liquidators to locate and recover Multichain's assets in the U.S. Multichain, previously known as Anyswap, encountered issues leading to its cessation of operations after significant asset thefts were reported in July 2023.

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