TL;DR
- Fantom Foundation has obtained a favorable judgment from the High Court of Singapore in its legal action against Multichain, after suffering a loss of over $210 million due to an exploit in July 2023.
- Fantom plans to move towards the liquidation of Multichain to recover the lost funds, requesting the appointment of a specialized liquidator to track and recover the lost assets.
- Despite this legal victory, the Foundation faces additional challenges, including another significant loss of $6.7 million in digital assets due to a hack in October of the same year.
Fantom Foundation, the team responsible for developing the Fantom Network, has made significant progress in its quest to recover lost assets due to an exploit that occurred in July 2023. After suffering a considerable loss of over $210 million in assets as a result of this breach, the Foundation initiated legal action against the Multichain protocol, accusing it of breach of contract and fraudulent misrepresentations.
Despite efforts by the Foundation to communicate with Multichain’s directors and key personnel, all attempts failed. This led the Foundation to take legal action in Singapore, where Multichain is incorporated. Following a legal process, the High Court of Singapore issued a favorable judgment in favor of Fantom on January 30, 2024, granting them a default judgment.
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
With this legal victory in hand, Fantom now plans to proceed with the liquidation of Multichain with the aim of recovering the lost funds. To carry out this process, the Foundation has requested the appointment of a specialized liquidator by the court, who will possess the necessary legal and technical capabilities to track and recover the lost assets. Additionally, the liquidator will act in the interests of all creditors involved in this case.
Fantom Will Face a Difficult Path If It Wants to Recover What Was Lost
The process is expected to be complex and time-consuming, but with the legal backing and determination of the Foundation, there is hope that a significant portion of the lost funds can be recovered.
However, the challenges do not end here. In addition to the incident suffered in July 2023, the organization also faced another significant loss of approximately $6.7 million in digital assets in another hack that occurred in October of the same year. These incidents highlight the daily challenges of the industry in terms of cybersecurity and the need for stronger security measures to protect the assets of users and organizations.
