New York Judge Extends Freeze on Stolen USDC Wallets

According to Odaily, a New York judge has temporarily extended the freeze on wallets holding approximately $63 million in stolen USDC stablecoins. This decision supports the request of the liquidator from the now-defunct cryptocurrency cross-chain bridge, Multichain, based in Singapore. Judge David S. Jones has ordered Circle to maintain the freeze on three Ethereum wallets and preserve the dollar reserves backing the stolen USDC. The liquidator warned that lifting the freeze could result in 'irreparable harm.' Additionally, the order has paused a separate class-action lawsuit initiated by a group of U.S. investors seeking control over the funds. Last Friday, the case was transferred to the federal court in the Southern District of New York after Circle invoked the Class Action Fairness Act. Under Section 1519 of the U.S. Bankruptcy Code, the order is temporary, and the court will review whether the Singapore liquidation process qualifies as a 'foreign main proceeding' to regulate cross-border bankruptcy cooperation.