New York judge extends $63M asset freeze to aid Multichain liquidation
The post New York judge extends $63M asset freeze to aid Multichain liquidation appeared on BitcoinEthereumNews.com.
A federal judge in New York has ruled to postpone the release of assets on crypto wallets worth $63 million in stolen USD Coin (USDC), lending support to efforts by Singapore-based liquidators of collapsed crypto bridge Multichain, who are looking for recognition of their case in the United States. The temporary order was issued on Thursday by Judge David S. Jones of the Southern District of New York, mandating stablecoin issuer Circle to keep assets in three Ethereum wallets frozen and preserve the dollar reserves that back the stolen USDC. The court said the order was necessary to prevent the potential loss or misappropriation of assets while cross-border liquidation proceedings continue. US federal court takes over the case Multichain Singapore’s liquidation case was initially filed in New York state court, but was moved to federal court last week after Circle invoked the Class Action Fairness Act. The Class Action Fairness Act of 2005 broadened the authority of US federal courts to oversee class action lawsuits initially filed in state courts. The law permits defendants to transfer such cases to federal jurisdiction if specific criteria are met, including a minimum number of class members and a monetary threshold for the dispute. For a federal district court to hear a case, it must hold jurisdiction over both the parties and the subject matter, known as personal and subject matter jurisdiction, respectively. The transfer automatically paused a separate class action brought by a group of US investors asking courts to hand control of the same $63 million to them through litigation against Circle. That case had been proceeding in state court before the federal move changed the jurisdiction. Judge Jones’ order is provisional under Section 1519 of the US Bankruptcy Code, which allows courts to grant temporary relief to protect assets before formally…
Filed under: News - @ October 31, 2025 9:29 am