According to Odaily Planet Daily, a New York judge temporarily extended the freeze on wallets holding approximately $63 million worth of stolen USDC stablecoins on Thursday, supporting the request of the Singapore liquidators of the defunct cryptocurrency cross-chain bridge Multichain.
Judge David S. Jones ordered Circle to keep three Ethereum wallets frozen and to retain the dollar reserves backing the stolen USDC. The liquidator warned that lifting the freeze order in the state court would cause "irreparable damage." The order also suspended another class-action lawsuit filed by a group of U.S. investors attempting to gain control of the funds.
Last Friday, the case was transferred to the U.S. District Court for the Southern District of New York after Circle invoked the Fair Class Action Act. Under Section 1519 of the U.S. Bankruptcy Code, this order is provisional, and the court will review whether the Singapore liquidation proceedings meet the criteria for a “major foreign procedure” to regulate cross-border bankruptcy cooperation. (Decrypt)
