What happened?
A New York bankruptcy court gave provisional relief to Singapore-based liquidators and ordered Circle to keep three Ethereum wallets frozen that hold about $63 million in stolen USDC. The judge issued the order under Section 1519 while the court considers recognizing the Singapore insolvency under Chapter 15. The ruling restores legal authority to block transfers after the DOJ’s earlier seizure warrant was lifted.
Who does this affect?
This affects the Multichain liquidators (KPMG), creditors and victims of the hack, Circle as the USDC issuer, and anyone with legal claims on the frozen funds. It also pauses a competing U.S. class action over the same tokens and prevents the unidentified hackers from moving the assets. Broader DeFi projects, investors in cross‑chain bridges, and stablecoin users will be watching the outcome closely.
Why does this matter?
The decision shows courts can enforce cross‑border freezes on tokenized assets, which could improve the odds of recovering stolen crypto and give victims more legal tools. That may boost confidence among some investors that stolen funds can be contained, but it also spotlights how centralized control by issuers can affect blockchain asset finality. Expect greater regulatory and compliance scrutiny on bridges and stablecoins, potentially raising costs and a small risk premium for assets seen as legally encumbered.