Key Takeaways
- The court will evaluate the damages owed to Fantom and require Multichain to repay them.
- Fantom stated that the High Court of Singapore issued a default judgment ruling in its favour regarding the legal action against the cross-chain protocol Multichain.
The Fantom Foundation is making headlines as it takes decisive legal action against the Multichain Foundation, aiming to recoup a staggering $122 million lost in an exploit that shook the cryptocurrency world in July 2023. This exploit, which targeted the Multichain bridge, resulted in the depletion of over $210 million in assets across various chains, including those within Fantom’s ecosystem.
Now, Fantom is gearing up to petition the Singapore High Court to wind up the Multichain Foundation and appoint a liquidator to aid in the retrieval and distribution of the frozen assets. This bold move comes after Fantom’s exhaustive efforts to address the fallout from the exploit, which included filing a police report in Singapore, where Multichain is headquartered.
In a recent development, Fantom announced that the Singapore High Court had granted a default judgment ruling in their favor, clearing the way for legal proceedings against Multichain. While the court ruling initially addresses Fantom’s own losses, the foundation intends to leverage this victory to enable all affected users to seek restitution from Multichain.
In a blog post, Fantom stated that on January 30, 2024, ‘the Honorable Registrar Tan Boon Heng of the General Division of the High Court of Singapore granted a default judgment ruling in Fantom’s favor’.
“Given the recent ruling, we will use the Fantom Foundation’s financial losses to petition the court to wind up the Multichain Foundation and appoint a liquidator (equivalent to a Chapter 7 bankruptcy in the U.S.) to help recover and distribute missing or frozen assets,” Fantom Foundation’s statement reads.
If successful, the appointed liquidator would be empowered to seize Multichain’s assets, reverse transactions, and recover other funds to compensate creditors. Despite acknowledging the slim likelihood of immediate payment from Multichain, Fantom remains steadfast in its pursuit of justice.
“Over the next few months, we will progress the matter until a liquidator is appointed,” it stated. Since the exploit, Fantom has been actively engaged in efforts to recover the lost assets. These efforts have involved filing a report with the Singapore police, given that the Multichain Foundation is incorporated in Singapore, and initiating legal action against the company.
