The Fantom Foundation Wins Legal Battle 🏆
Recently, the Fantom Foundation achieved a significant legal victory in Singapore’s High Court. The court ruled that Multichain Foundation Ltd. and Multichain Pte Ltd. must pay $2.19 million in damages for failing to provide 4.175 million FTM tokens or their equivalent market value. This win highlights the complexities of cryptocurrency-related lawsuits and their outcomes.
Damages Breakdown 💸
- The court awarded Fantom Foundation $58,620.55 for the loss of stablecoins like USDT, USDC, and DAI.
- An additional $2,129,250 was granted for the 4.175 million FTM tokens based on the current market price.
- Valuation involved using the token’s price on April 14, 2023, and the mid-price from Binance.
Impact of Security Breach 🔒
The legal battle stemmed from a significant security breach on July 7, 2023, resulting in a loss exceeding $127 million and material belonging to the Fantom Foundation. Subsequently, as of September 18, 2023, the devaluation of the lost assets influenced the court’s decision on the damages.
Fantom Foundation’s Response 📣
Following the court ruling, the Fantom Foundation emphasized the importance of the verdict in seeking restitution for the lost capital. Additionally, the decision kickstarted the winding-up process of the company, leading to the appointment of a third-party liquidator. This appointed liquidator, partially funded by the Fantom Foundation, aims to recover and return lost or frozen funds to all stakeholders, a crucial step towards rectifying the situation.
By
By
By
