The Fantom Foundation is taking legal action against Multichain Foundation to recover assets lost in a July 2023 exploit.
The Fantom Foundation is taking legal action against Multichain Foundation to recover assets lost in a July 2023 exploit. In a blog post, Fantom announced its intention to petition the Singapore High Court to liquidate Multichain, citing a default judgment in their favor for alleged breach of contract and fraudulent misrepresentations.
The July exploit resulted in a total loss of $210 million across various blockchains, with Fantom claiming one-third of that amount. Following a January default judgment in Fantom's favor, the Singaporean court is expected to appoint a liquidator to assess damages and facilitate the recovery of missing assets.
According to Fantom, the foundation attempted to engage with Multichain before resorting to legal action. They expressed doubts about Multichain cooperating, paving the way for a potential court-ordered liquidation to recoup lost funds.
This legal battle could set a precedent, potentially offering a pathway for other Multichain users impacted by the exploit to seek compensation through the default judgment ruling. Fantom further stated that the platform's founder is under investigation in Kunming, China, but did not elaborate on the nature of the investigation.
Additionally, Fantom has proposed a class-action lawsuit against Multichain, allowing affected users to participate in a collective legal effort to recover their losses.
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