TL;DR
- The Singapore High Court has authorized Sonic Labs to force the liquidation of Multichain Foundation following the 2023 hack that caused over $210 million in losses.
- Sonic Labs, formerly known as the Fantom Foundation, accused Multichain of non-cooperation, prompting the legal action.
- Accounting firm KPMG has been appointed as the official liquidator to oversee asset recovery and compensate affected users.
Sonic Labs has achieved a major legal victory in its effort to protect crypto ecosystem users. On May 9, the Singapore High Court issued an order authorizing the forced liquidation of the Multichain Foundation, following one of the most notorious hacks of 2023. Global audit firm KPMG has been appointed as the official liquidator, marking the beginning of a process to recover over $210 million in lost assets and compensate the victims.
Multichain, previously known as Anyswap, operated as a cross-chain bridge protocol, allowing the transfer of assets across networks like Fantom, Ethereum, and BNB Chain. In July 2023, a severe security breach led to a massive outflow of funds, leaving thousands of users in financial limbo. Sonic Labs, which was still operating under the name Fantom Foundation at the time, suffered a staggering $122 million loss. After months of silence and lack of cooperation from Multichain, and amid the disappearance of its CEO Zhaojun, later confirmed to be under arrest in China, Sonic Labs decided to take legal action.
Legal Recovery in a Decentralized Ecosystem
This court ruling in favor of Sonic Labs represents more than just a one-off victory, it sets a precedent for the wider crypto industry. In an environment known for its decentralization and anonymity, the ability to resort to traditional legal frameworks to hold failed projects accountable is seen by many as a positive step toward greater legitimacy and user protection.
Michael Kong, CEO of Sonic Labs, stated that if Multichain had collaborated from the beginning, this entire legal ordeal could have been avoided. In his words,
“We were forced to act because the foundation simply vanished and left victims without answers.”
Now, with KPMG in charge, it is expected that other affected projects and users will also be able to file claims and seek restitution.
A Sign of Maturity for the Crypto Space
Beyond the headlines, this case reflects a healthy evolution within the crypto space: responsible players are now willing to use all available tools to seek justice. Although the road ahead remains challenging, legal resolutions like this one prove that accountability is possible, even in a decentralized world. For those who believe in the transformative potential of cryptocurrencies, this is not a threat, it’s a clear signal of growing maturity and responsibility.
