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.
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.
