Delaware Court Issues Temporary Restraining Order in Quidd Inc. Case Involving $1.7 Million in USDC

On Tuesday, September 10, 2024, the Delaware Court of Chancery issued a temporary restraining order (TRO) in the case of Quidd Inc. v. John Doe Nos. 1 & 2, asserting in rem jurisdiction over $1,700,004.28 in USDC, designated as Frozen Assets. The court’s order prohibits any sale, transfer, or conversion of these assets without prior approval.

The ruling follows allegations of theft and unauthorized transfers related to the Frozen Assets. The court found sufficient cause to believe that these assets are connected to various blockchain addresses and that they may have been held or controlled by multiple financial entities, including Circle Internet Financial Inc., Coinbase Global Inc., Binance Holdings Limited, Bybit Fintech Limited, Conduit Technology Inc., and Plumter Inc., among others.

In its order, the court mandated that the plaintiff, Quidd Inc., must serve copies of the TRO to each identified Possible Custodian, who are required to cooperate with the plaintiff in the process of securing the Frozen Assets. This cooperation includes restricting any transfers associated with the blockchain addresses identified by the plaintiff.

The order also stipulates that if any Frozen Assets are sold or transferred before or after the issuance of the TRO, the proceeds from such transactions will be treated as Frozen Assets as well. The court emphasized the importance of maintaining the confidentiality of information obtained from the Possible Custodians, though the plaintiff is permitted to use this information in judicial and law enforcement contexts.

The TRO is granted for a duration of ten days, during which Quidd Inc. must schedule a hearing to discuss the potential extension of the order or its conversion into a preliminary injunction.

Please contact BlockTribune for access to a copy of this filing.