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

A New York court has upheld a freeze on wallets holding approximately $63 million in frozen USDC connected to the collapsed crypto bridge Multichain. The decision supports Singapore liquidators who are seeking recognition of their liquidation efforts in the U.S. Judge David S. Jones directed Circle to maintain the freeze on three Ethereum wallets, aiming to prevent potential harm if the freeze were lifted. A related class action by U.S. investors seeking control over the same funds has been paused pending a Chapter 15 review, which will determine if Singapore's liquidation qualifies as a foreign main proceeding. Multichain, noted for linking various blockchain networks, encountered significant issues last year, resulting in a loss of over $125 million from its wallets. If recognized, Singapore's liquidators will be authorized to recover Multichain’s assets in the U.S. under coordinated court supervision.

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