New York Court Freezes $63M in USDC Amid Multichain Liquidation
- A New York judge extended a freeze on three Ethereum wallets holding approximately $63 million in stolen USDC stablecoins.
- The freeze supports Singapore liquidators of the collapsed crypto bridge Multichain, seeking U.S. recognition of the case.
- A related class action by U.S. investors was paused pending a Chapter 15 review to determine if Singapore’s liquidation qualifies for formal recognition in the U.S.
- Multichain, previously known as Anyswap, was a major cross-chain asset bridge with a peak total value locked of roughly $9.2 billion in early 2022.
- The court’s decision is provisional under Section 1519 of the U.S. Bankruptcy Code, allowing temporary relief to protect assets before formal case recognition.
This legal move aims to prevent potential harm and unauthorized claims on assets while awaiting court decisions on international insolvency proceedings involving Multichain’s liquidation.
The outcome will determine if Singaporean liquidators can act within the U.S., ensuring coordinated efforts to recover and preserve Multichain’s assets under court supervision, highlighting the complexities of cross-border insolvency cases in cryptocurrency markets.(Source)
