The Fantom Foundation, responsible for the development of the Fantom Network, has secured a favorable ruling from the High Court of Singapore in its legal pursuit against the cross-chain protocol Multichain. This legal action stemmed from an unfortunate incident in July 2023 when the Foundation suffered a substantial loss of over $210 million due to an exploit by Multichain.
In response to the exploit, the Foundation initiated legal proceedings against the Multichain Foundation, citing “breach of contract and fraudulent misrepresentations” that contributed to Fantom’s financial losses.
In a recent communication on X (formerly Twitter), the company stated, “Since the July 2023 Multichain exploit, the management and legal team of Fantom Foundation have been diligently working across various jurisdictions to devise a strategy that facilitates partial recovery of lost assets for victims.”
Since the July 2023 Multichain exploit, Fantom Foundation’s management and legal team have been working tirelessly across multiple jurisdictions to chart a path forward that enables victims to partially recover assets lost. We have an important update in this regard.
After all… pic.twitter.com/pUxyalPdMD
— Fantom Foundation (@FantomFDN) March 4, 2024
According to Fantom’s assertions, it made multiple efforts to communicate with the former directors and key individuals associated with the Multichain Foundation. Despite these efforts, they were unsuccessful, prompting the company to initiate legal proceedings against Multichain in Singapore, where Multichain is legally registered.
In a blog post on Monday, Fantom noted that the lack of cooperation from the Multichain team has added complexity to resolving the exploit situation.
“We are delighted to inform you that on January 30, 2024, the Honorable Registrar Tan Boon Heng of the General Division of the High Court of Singapore issued a default judgment in favor of Fantom.”
Fantom Unveils Strategic Plan for Multichain Liquidation to Recover Funds
In response to the legal victory secured in Singapore, Fantom has unveiled a strategic plan aimed at maximizing the recovery of funds lost in the Multichain exploit. Central to this plan is the initiation of the Multichain liquidation process. This entails the systematic dismantling of Multichain’s assets and resources with the aim of recouping financial losses incurred by Fantom and other affected parties.
The decision to pursue Multichain’s liquidation signifies Fantom’s commitment to diligently pursue all available avenues to mitigate the impact of the exploit. By liquidating Multichain, Fantom aims to optimize the recovery process and ensure that affected stakeholders receive a fair restitution for their losses.
Furthermore, this strategic move underscores Fantom’s proactive approach in addressing the aftermath of the exploit. By taking decisive action to liquidate Multichain, Fantom demonstrates its resolve to uphold accountability and protect the interests of its community and investors.
The Multichain liquidation process is expected to unfold over a series of meticulous steps, guided by legal procedures and regulatory requirements. Fantom’s management and legal teams will work diligently to navigate this complex process, leveraging their expertise to maximize the recovery of funds and achieve a favorable outcome for all stakeholders.
Overall, Fantom’s decision to pursue Multichain’s liquidation underscores its unwavering commitment to transparency, accountability, and the safeguarding of its ecosystem against external threats. Through strategic initiatives like the Multichain liquidation, Fantom aims to reinforce trust and confidence in its platform while ensuring the equitable treatment of all parties affected by the exploit.
