A New York judge has temporarily extended a freeze on wallets holding $63 million in stolen USDC stablecoins, backing Singapore liquidators of collapsed crypto bridge Multichain. Judge David S. Jones ordered Circle to maintain the freeze to prevent potential harm. The freeze also impacts a class action by U.S. investors seeking control of the same $63 million.

The order remains provisional under the U.S. Bankruptcy Code, allowing courts to grant temporary relief to protect assets. The court will review if the Singapore liquidation qualifies as a “foreign main proceeding” under Chapter 15. If recognized, it would authorize the liquidators to recover Multichain’s assets in the U.S.

Multichain, formerly Anyswap, was a major cross-chain asset bridge with a total value locked of $9.2 billion in early 2022. Troubles started in May 2023 when transactions froze, CEO Zhaojun was arrested, and $125 million in assets were moved from Multichain’s wallets, leading to an immediate shutdown of operations.

Read more at Yahoo Finance: New York Court Extends Asset Freeze to Aid Singapore’s Multichain Liquidation