New York Court Extends Freeze on $63M Stolen USDC Linked to Multichain Hack

A has extended an asset freeze on $63 million worth of USD Coin (USDC) tied to the 2023 Multichain cross-chain bridge hack, in a coordinated effort with Singapore’s judiciary. The ruling represents a significant milestone in cross-border crypto law enforcement, marking one of the first instances of joint legal action between courts in the United States and Asia to preserve digital assets stolen from (DeFi) protocols.

The extended freeze, secured earlier this week, prevents any movement or liquidation of the seized tokens while ongoing investigations continue. The funds were flagged initially by , the issuer of USDC, which promptly froze the assets following suspicious activity traced to wallets connected to the Multichain exploit. The decision highlights a growing trend of collaboration among regulators, blockchain analytics firms, and courts to recover digital assets following major security breaches.

Joint-USDC Freeze Shows Coordinated Legal Effort Across Jurisdictions

The , which occurred in July 2023 and drained over $120 million, targeted the bridge’s smart contracts, impacting users across multiple blockchains, including ETH, Fantom, and BNB Chain. While the project later collapsed amid controversy surrounding its leadership and operational control in China, the incident has since become a test case for how courts manage stolen crypto assets across borders.

In this instance, New York’s Supreme Court worked in tandem with Singapore’s High Court to issue mutually recognized freezing orders, allowing authorities to lock down the assets stored in wallets accessible through global platforms. Legal experts describe the move as a “precedent-setting collaboration” that could redefine international standards for recovering crypto assets. However, enforcement still hinges on traditional legal mechanisms.

Circle’s Proactive Approach Shows Issuers’ Security Role 

Circle’s intervention played a pivotal role in identifying and securing the frozen funds. The company’s compliance and monitoring systems flagged the suspicious movements soon later than the Multichain exploit, leading to the swift blacklisting of the affected .

The move reinforces Circle’s positioning as one of the more compliance-oriented stablecoin issuers in the market, especially as it prepares for greater regulatory scrutiny under the forthcoming U.S. stablecoin legislation. The company has repeatedly highlighted its cooperation with global law enforcement as part of its efforts to ensure the legitimacy of USDC circulation.

For the wider industry, the outcome illustrates how centralized oversight, even within decentralized ecosystems, can serve as a crucial securety net. Analysts argue that Circle’s ability to intervene contrasts sharply with the governance challenges that plagued Multichain and other permissionless systems.

The coordinated action could assist standardize how courts handle these cases, including recognizing blockchain-based evidence, coordinating custodial seizures, and harmonizing international jurisdictional claims. It also signals that regulators are becoming more comfortable leveraging forensic blockchain data to build cross-border cases.

Meanwhile, efforts to recover the remaining stolen Multichain funds continue. Investigators are reportedly tracing other associated wallet addresses across various blockchain networks, although legal complexities and jurisdictional barriers persist.