Current Status of Frozen Assets
Published 6/21/2026, 3:30:00 AM
The status of Multichain’s frozen USDC is currently defined by a multi-jurisdictional legal battle between liquidators in Singapore and private claimants in the United States. As of late 2025, approximately $63 million in USDC remains frozen by Circle across three Ethereum addresses under a preliminary injunction issued by the U.S. District Court for the Southern District of New York [Source: https://www.bloomberg.com/news/articles/2025-10-30/circle-ordered-to-keep-63-million-in-stolen-crypto-frozen].
Current Status of Frozen Assets
The frozen funds represent roughly half of the $126 million drained from Multichain in July 2023. While the assets are visible on-chain, they are "blacklisted" by the issuers, preventing any movement or redemption until a final court order is issued.
| Asset | Amount | Status | Primary Controller |
|---|---|---|---|
| USDC | ~$63 Million | Frozen | Circle (via NY Court Order) |
| USDT | ~$2.53 Million | Frozen | Tether |
| Other Assets | ~$60 Million | Missing | Unknown (Likely Laundered) |
Legal Proceedings and Recovery Path
The recovery process has transitioned from a criminal investigation to a formal insolvency framework:
- Singapore Liquidation: In May 2025, the Singapore High Court ordered the winding up of Multichain Foundation Ltd and appointed liquidators from KPMG Services [Source: https://www.elitigation.sg/gd/s/2024_SGHC_173]. Their mandate is to recover all assets for equitable distribution to creditors.
- U.S. Chapter 15 Filing: To gain control of the $63 million held by Circle (a U.S. entity), the liquidators filed for Chapter 15 bankruptcy recognition in New York (Case 25-12340-dsj) [Source: https://www.pacer.gov/]. This allows the Singapore liquidation to be recognized as the "foreign main proceeding."
- The "Freeze" Extension: On October 31, 2025, Judge David S. Jones granted a preliminary injunction requiring Circle to maintain the freeze. This prevents the funds from being depleted by individual lawsuits before the liquidators can establish a fair distribution plan for all affected users [Source: https://www.bloomberg.com/news/articles/2025-10-30/circle-ordered-to-keep-63-million-in-stolen-crypto-frozen].
Expected Outcomes for Holders
While the funds are secured, the timeline for recovery remains a multi-year process due to competing claims:
- Equitable Distribution: The liquidators intend to distribute the $63 million proportionally among all verified victims under Singapore insolvency law.
- Private Litigation Hurdles: Groups like the Newton AC/DC Fund have filed separate lawsuits against Circle, claiming a direct right to a portion of the frozen USDC (specifically 3.575 million Multi-USDC) [Source: https://www.pacer.gov/]. The court must decide if these private claims take precedence over the general liquidation.
- Fantom (Sonic Labs) Precedent: The Fantom Foundation successfully secured a $2.18 million default judgment against Multichain in July 2024, which served as the legal catalyst for the current liquidation process [Source: https://blog.fantom.foundation/fantom-foundation-update-on-judgment-against-multichain/].
Conclusion: The USDC is legally "locked" in a stalemate. While the funds are physically safe due to the freeze, users cannot yet claim them. Recovery depends on the U.S. court granting the Singapore liquidators full authority to collect and distribute the assets, a process likely to continue through 2026.
Next Step: Would you like me to monitor the New York court docket (Case 25-12340-dsj) and alert you if a final distribution plan is approved?