Fantom Foundation Takes Legal Action Against Multichain for $122M Theft
The Fantom Foundation has initiated legal action against the Multichain Foundation in Singapore's High Court, aiming to declare it bankrupt following the theft of $122 million from Multichain's Fantom bridge in July 2023.
Fantom secured a default judgment ruling on Jan. 30, alleging “breach of contract and fraudulent misrepresentations” by Multichain.
In response, Fantom plans to petition the court for Multichain Foundation’s winding up, with the intention of appointing a liquidator to recover and distribute missing assets. The liquidator would be empowered to manage Multichain’s assets and recover transactions for creditor repayment.
Although the court’s judgment pertains only to Fantom’s losses, Fantom aims to use this as precedent for all affected users to lodge claims. Fantom pledges to continue the legal process until a liquidator is appointed.
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Total losses from Multichain’s exploit are estimated at $210 million by blockchain security firm Beosin and Fantom. Multichain facilitated fund bridging across various blockchains, experiencing unauthorized withdrawals in July last year.
Fantom has actively pursued asset recovery since the exploit, filing reports with Singapore and China’s police and initiating legal action. Multichain’s co-founder, Zhaojun He, was arrested in May 2023, though his involvement remains unconfirmed.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
