US, Singapore Courts Team Up to Protect Multichain’s Missing Crypto
NEW YORK/SINGAPORE — In a groundbreaking cross-border alliance, a New York federal judge has extended a freeze on $63 million in stolen cryptocurrency, shielding Multichain’s missing crypto from potential dispersal and aiding Singapore’s liquidation efforts. This rare judicial handshake underscores the global push to recover funds lost in one of DeFi’s biggest hacks.
The order, issued Wednesday by U.S. Bankruptcy Judge David S. Jones in the Southern District of New York, directs stablecoin issuer Circle to lock down three Ethereum wallets holding the pilfered USDC. These assets trace back to the July 2023 Multichain exploit, where hackers siphoned over $125 million from the cross-chain bridge protocol—once a powerhouse with $9.2 billion in locked value.
Multichain, formerly Anyswap, connected blockchains like Ethereum, Binance Smart Chain, and Polygon before chaos erupted. Founder Zhaojun’s arrest in China sparked transaction freezes in May 2023, culminating in the massive theft that shuttered operations overnight. Now, under Singapore’s oversight, KPMG-appointed liquidators Bob Yap Cheng Ghee, Toh Ai Ling, and Tan Yen Chiaw are spearheading recovery.
The U.S. ruling invokes Section 1519 of the Bankruptcy Code for provisional relief, pausing a class-action suit by American investors who also eye the funds. “This prevents immediate and irreparable harm,” the liquidators argued in filings, warning that unfreezing could let claimants snatch assets beyond reach. Attorney Joel H. Levitin, representing Multichain, hailed the decision as a “critical step” toward equitable distribution.
This isn’t isolated—it’s part of a Chapter 15 petition seeking U.S. recognition of Singapore’s winding-up process, enabling liquidators to hunt assets stateside. A related Fantom Foundation judgment in Singapore already greenlit liquidation pursuits, signaling momentum.
Crypto legal experts applaud the coordination. “It’s a model for how fragmented jurisdictions can align on digital asset disputes,” said Norton Rose Fulbright’s global fintech lead in a recent review, noting similar trends in UK and U.S. cases. The move echoes broader 2025 shifts, like Singapore’s High Court rulings on unclaimed crypto in insolvencies, blending trust law with token tech.
On X, reactions split between optimism and impatience. Users like @YankeeRuinX questioned reimbursement timelines for affected projects like Sonic Labs, posting, “How does today’s freeze extension affect the Multichain claim?” while others celebrated: “Key victory for liquidators—finally, some justice in DeFi hacks.” Threads from @CryptoEconomyEN racked up hundreds of views, with comments praising the “cross-border asset freeze” as a win for investor trust.
For U.S. readers, this saga hits close to home amid booming tokenized assets—projected to hit $2 trillion by 2028, per Standard Chartered. It bolsters protections for American DeFi users, who lost billions in bridges last year, and signals regulators’ intent to tame crypto’s wild west. Stronger ties between hubs like New York and Singapore could deter hacks, stabilize markets, and draw more institutional cash into blockchain tech.
As the Chapter 15 review unfolds next month, success here might unlock distributions to victims worldwide, setting precedents for future recoveries. Liquidators remain bullish: With assets secured, the hunt for Multichain’s missing crypto presses on, promising a fairer fight in the shadows of decentralized finance.
By Mark Smith
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