Multichain Foundation faces default judgment in favor of Fantom (FTM) Foundation
The Fantom (FTM) Foundation has emerged victorious in a significant legal battle against the Multichain cross-chain protocol in the High Court of Singapore. The court’s default judgment has granted permission for the liquidation of Multichain Foundation’s assets, allowing the Fantom Foundation to recoup the $122 million it lost during the Multichain Fantom bridge exploit in July 2023.
In a blog post released on March 4, the Fantom Foundation revealed that on January 30, the Honorable Registrar Tan Boon Heng of the General Division of the High Court of Singapore issued a default judgment ruling in favor of the project. This ruling has retroactively come into effect from November 30, 2023, and marks a significant step forward in the endeavor to recover the assets lost in Multichain’s Fantom bridge protocol last July.
The exploit of the Multichain Fantom bridge resulted in the loss of more than $210 million across various chains, including Fantom, Ethereum, BNB, Cronos, Polygon, Arbitrum, zkSync, Optimism, and Moonbeam. Approximately one-third of these losses were borne by the Fantom ecosystem.
To expedite the recovery of the exploited funds, the Fantom Foundation is actively pursuing the liquidation of the Multichain Foundation. The default judgment not only validates Fantom’s request but also signifies a crucial milestone in addressing the situation.
After unsuccessful attempts to engage with the former directors and key personnel of the Multichain Foundation, Fantom resorted to legal action against them for breaching contracts and making fraudulent misrepresentations that led to Fantom’s losses. Fantom clarified in their blog post that they hold no responsibility or liability for the actions of third-party infrastructure partners.
Moving forward, Fantom aims to progress the matter until a liquidator is appointed. The foundation is committed to providing all relevant knowledge and investigative material to support the liquidator’s efforts in recovering the assets.
In early 2024, Fantom strategically reduced the minimum staking requirements for validators from 500,000 FTM to 50,000 FTM. This adjustment was made to enhance network participation and accessibility for validators.
Projections for Fantom’s price have been optimistic, suggesting potential growth in the coming years. At the time of writing, Fantom (FTM) is trading at $0.66, reflecting a more than 90% increase in price over the past 30 days.
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