The Fantom Foundation, a blockchain platform for decentralized finance, announced in a blog post on Monday that it plans to petition the court to liquidate the Multichain Foundation to recover its missing assets.
Fantom said in a blog post that the amount of damage to its ecosystem was approximately one-third of the $210 million exploited in the cross-chain protocol multichain bridge in July.
According to the post, in January, the Singapore High Court issued a default ruling in favor of Fantom in its legal case against Multichain for breach of contract and fraudulent misrepresentation..
According to Fantom, this legal victory is expected to lead Singapore courts to assess Fantom’s damages resulting from Multichain’s security breach and appoint a liquidator to help recover and distribute missing or frozen assets.
“Given that Multichain does not exist on an ongoing basis, we do not expect this to happen,” Fantom said. “At this point, the Foundation will petition the court to shut down the Multichain Foundation and appoint a liquidator.” According to Fantom, the foundation’s decision to take legal action was made after several attempts to contact key personnel at Multichain.
Fantom’s case could provide a path for other multichain users to claim their lost assets through default judgment rulings. The multichain exploit resulted in a total loss of $210 million across chains including BNB, Ethereum, Polygon, and Arbitrum. Fantom added that the founder was under active investigation in Kunming, China.
According to post.
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About the author
Danny Park is The Block’s East Asia reporter, writing about topics including Web3 development and cryptocurrency regulation in the region. He previously worked as a reporter for Forkast.News, where he actively covered the fall of Terra-Luna and FTX. Based in Seoul, Danny previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor’s degree in Journalism and Business Marketing from the University of Hong Kong.