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Fantom's Quest for Bankruptcy Ruling Against Multichain to Recover Lost Millions

Key Takeaways

  • Fantom seeks to have Multichain declared bankrupt by the Singapore High Court to recover around $122 million lost in a bridge exploit.
  • A default judgment has been secured by Fantom, paving the way for the potential appointment of a liquidator to manage asset recovery.
  • The case highlights ongoing efforts to tackle security vulnerabilities within the blockchain space.
Fantom's Quest for Bankruptcy Ruling Against Multichain to Recover Lost Millions

The Fantom Foundation is turning to the Singapore High Court to declare the Multichain Foundation bankrupt.

This action was taken with the aim of recovering around $122 million lost in the exploit of Multichain's Fantom bridge in 2023.

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The saga unfolded when the Fantom Foundation accused Multichain of "breach of contract and fraudulent misrepresentations for losses," leading to a default judgment by the Singapore High Court on January 30.

Fantom now seeks the appointment of a liquidator to manage the recovery and redistribution of the missing assets, akin to a Chapter 7 bankruptcy process in the United States.

Fantom highlighted that its losses constituted a third of the total losses tied to Multichain, with the remainder distributed among various blockchains.

Although this judgment relates only to Fantom's losses, the foundation's approach centers on using this financial setback as a catalyst to achieve justice for all impacted users by paving a path for them to file claims against Multichain.

These legal maneuvers represent a critical juncture in the ongoing battle against cyber vulnerabilities within the crypto sector.

Multichain served as a protocol facilitating the transfer of tokens across diverse blockchains. The breach in July occurred shortly after the disappearance of its CEO amidst technological malfunctions and alterations to key nodes critical for maintaining platform security.

Aaron S. , Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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