User Withdraws $85,740 USDC From Frozen Funds

2 mins mins

Key Points:

User withdraws $85,740 USDC from frozen Multichain funds.
Rabby Wallet facilitates asset recovery from DeFi protocols.
Singapore High Court approved Multichain liquidation in May 2025.

On December 22, a user retrieved $85,740 USDC through Rabby Wallet’s functionality, following Multichain’s liquidation in Singapore and amidst ongoing US legal asset freezes.

This retrieval demonstrates asset recovery possibilities in DeFi, as some funds become accessible post-hack and liquidation. Implications for affected users continue to unfold.

User Recovers Frozen $85,740 USDC from Multichain Incident

A user managed to withdraw $85,740 USDC through Rabby Wallet, months after the funds were initially frozen. This development arises from a broader effort to retrieve assets affected by the Multichain failure, which led to the freeze.

The Multichain incident, impacting over $125 million, has led to significant repercussions. KPMG’s appointment as a liquidator marks progress toward fund recovery for users, emphasizing the importance of regulatory and institutional actions in post-incident fund management. “This case highlights the critical role of legal interventions in ensuring asset recovery in complex financial ecosystems,” stated a representative from KPMG.

Overall, there have been multiple industry reactions. The continuation of asset freezing under US court authority provides a critical framework for proper asset recovery. The lack of public statements from prominent industry figures suggests a focus on procedural and legal outcomes.

Cross-Jurisdictional Cooperation Key to Asset Recovery

Did you know? In similar incidents, financial recovery operations post-liquidation often necessitate extensive legal cooperation, as evidenced by the joint efforts of Singapore and US authorities in the Multichain case.

As of December 22, 2025, USDC’s market cap is $77.12 billion with a 2.58% dominance. The stablecoin priced at $1.00 has shown negligible price fluctuations across various time frames, according to CoinMarketCap. Over 77 billion tokens circulate with an unrestricted supply.

usdc-daily-chart-359 — USDC(USDC), daily chart, screenshot on CoinMarketCap at 21:12 UTC on December 22, 2025. *Source: CoinMarketCap*

Insights from the Coincu research team suggest the Multichain asset freeze demonstrates a growing regulatory landscape, with potential impacts on stablecoin market operations worldwide. This may lead to increased scrutiny and asset recovery innovations across the DeFi ecosystem.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.