Rabby Wallet Recovers 85,740 USDC Trapped in Multichain After 2023 Collapse

Rabby Wallet has publicly confirmed the recovery of 85,740 USDC trapped in Multichain since 2023. The firm notes that users can trace and reclaim assets via DeFi protocols even when the original frontend is defunct, underscoring robust on-chain recovery pathways for distressed custody events.

Multichain‘s 2023 collapse triggered outsized asset outflows estimated at $125–$130 million, leaving the fate of remaining funds unclear and many users unable to withdraw.

In May 2025, the Singapore High Court approved the liquidation of the Multichain Foundation. As proceedings progress, some previously frozen or locked funds are being unlocked, particularly assets not diverted by illicit actors or released through enforcement actions, aiding potential restitution for affected users.