The Fantom Foundation seeks a declaration of bankruptcy for the Multichain Foundation from the Singapore High Court, aiming to recover $122 million lost in a breach last year. 

Fantom claims that Multichain breached their contract and made fraudulent misrepresentations leading to the loss. With a default judgment ruling in their favor on Jan.30, Fantom plans to use their financial losses to push for Multichain’s bankruptcy and appoint a liquidator to recover and distribute missing assets.

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

The court will assess damages and demand repayment from Multichain, but Fantom expects resistance and plans to request a liquidator’s intervention if necessary. If approved, the liquidator would have powers to seize Multichain’s assets, reverse transactions, and recover funds to repay creditors.

Fantom stated that while the court’s ruling specifically addresses its losses, it intends to leverage this legal win to enable all users to file claims against Multichain.

Beosin, a blockchain security firm, along with Fantom, estimated Multichain’s total losses from the exploit to be $210 million. 

Multichain’s protocol facilitated cross-chain transactions for users across various blockchains, including Fantom, Ethereum, and Polygon. In July of the previous year, the platform experienced a series of unauthorized withdrawals.

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