Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesBotsEarnCopy
Fantom seeks to liquidate Multichain Foundation to recover assets from July exploit

Fantom seeks to liquidate Multichain Foundation to recover assets from July exploit

The BlockThe Block2024/03/05 06:10
By:The Block

Quick Take Fantom seeks to liquidate Multichain Foundation to claw back lost assets in the exploit that occurred last July.

Fantom seeks to liquidate Multichain Foundation to recover assets from July exploit image 0

Fantom Foundation, a blockchain platform for decentralized finance, announced Monday in a blog post that it plans to petition the court to liquidate Multichain Foundation to recover missing assets.

Fantom said in the blog post that the amount its ecosystem lost accounts for around one-third of the $210 million exploited off of the cross-chain protocol Multichain bridge last July.

In January, the High Court of Singapore made a default judgment in favor of Fantom on its legal action against Multichain for alleged breach of contract and fraudulent misrepresentations, according to the post.

With this legal victory, the Singaporean court is expected to appoint a liquidator to assess Fantom’s damages resulting from Multichain’s security breach and help recover and distribute the missing or frozen assets, according to Fantom. 

“Given the persistent absence of Multichain, we do not expect this to occur, at which point the Foundation will petition the court to wind up the Multichain Foundation and appoint a liquidator,” Fantom said. The foundation’s decision to take legal action came after multiple attempts to engage with key personnel of Multichain, according to Fantom.

Fantom’s case could provide a pathway for other Multichain users to claim lost assets with the default judgment ruling. Multichain’s exploit resulted in a total loss of $210 million across chains, including BNB, Ethereum, Polygon and Arbitrum. Fantom added that its founder is subject to an active investigation in Kunming, China.

The DeFi platform has also opened a proposal for a class action lawsuit against Multichain for affected users to take part in, according to its X post .


0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Trump turns on ‘buddy’ Putin over Ukraine, says he’ll slap Russia with sanctions now

Share link:In this post: Trump warned he may hit Russia with new sanctions after fresh missile attacks on civilians. Trump met with Zelenskyy in Rome and called the meeting productive, but gave no full details. Trump offered a peace deal that includes recognizing Crimea as Russian territory, which Zelenskyy rejected.

Cryptopolitan2025/04/26 21:12

Trump’s economic and geopolitical failures took center stage at Pope Francis’ funeral

Share link:In this post: Trump’s economic and diplomatic tensions took over the spotlight at Pope Francis’ funeral. Trump met briefly with Zelenskyy, Macron, and Starmer during the service but made little progress. Trump skipped a second meeting with Zelenskyy and left Rome quickly after the Mass.

Cryptopolitan2025/04/26 21:12
Trump’s economic and geopolitical failures took center stage at Pope Francis’ funeral

Elon Musk and Nobel laureates call for investigation into OpenAI’s nonprofit mission

Share link:In this post: Elon Musk called OpenAI restructuring plan the “scam of the century” after experts oppose it. Legal and AI experts have called on Attorneys General of Delaware and California to OpenAI core mission as a non-profit. Concerns about Open AI deviating from its non-profit origins is not limited to Musk.

Cryptopolitan2025/04/26 21:12
Elon Musk and Nobel laureates call for investigation into OpenAI’s nonprofit mission

Republicans propose shutting down US audit regulator PCAOB

Share link:In this post: Republicans plan to scrap the Public Company Accounting Oversight Board (PCAOB). The agency’s responsibilities could be pushed to the SEC if the lawmakers succeed in shutting it down. Republicans also want to pass a major tax bill that could change the non-profit sector.

Cryptopolitan2025/04/26 21:12
Republicans propose shutting down US audit regulator PCAOB