Fantom Foundation: The Singapore court issued a default judgment against Multichain and will request the court to liquidate the Multichain Foundation
The Fantom Foundation announced that after all attempts to contact former directors and key members of the Multichain Foundation had failed, the Fantom Foundation filed a lawsuit against the Multichain Foundation, accusing it of breaching the contract and making fraudulent misrepresentations about the losses suffered by the Foundation. On January 30, 2024, Tan Boon Heng, the Judicial Commissioner of the Singapore High Court, made a favorable default judgment for Fantom.
In the following months, the Singapore court will quantify the losses suffered by the Fantom Foundation. Once the damages are assessed, the Foundation will make a statutory demand to Multichain to pay the amount assessed by the court. Given Multichain's continued absence, it is unlikely that this will happen, and the Foundation will then request that the court liquidate the Multichain Foundation and appoint a liquidator (similar to Chapter 7 bankruptcy in the United States).
The liquidator will act on behalf of all affected parties, have expertise in tracing and recovering assets, and have the legal authority to recover and recover bridged assets, assess and manage claims, and distribute any recovered funds. The liquidator will also have court-authorized powers to act on behalf of the Multichain Foundation to assist in the recovery of community assets, including frozen stablecoins totaling approximately $65 million.
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