Fantom Foundation Wins Legal Battle to Recover $122 Million Lost in Multichain Exploit
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 has granted a default judgment that allows the liquidation of Multichain Foundation’s assets, enabling Fantom Foundation to recover the $122 million it lost during the Multichain Fantom bridge exploit in July 2023.
Ruling in Favor of Fantom Foundation
In a blog post on March 4, the Fantom Foundation announced that the Honorable Registrar Tan Boon Heng of the General Division of the High Court of Singapore issued a default judgment ruling in favor of their project. This ruling is retroactively effective from November 30, 2023, and signifies a significant step forward in reclaiming the lost assets.
Efforts to Recover Exploited Funds
Following the exploit of the Multichain Fantom bridge, which resulted in the loss of over $210 million across various chains, including Fantom, Ethereum, BNB, Cronos, Polygon, Arbitrum, zkSync, Optimism, and Moonbeam, the Fantom Foundation has been actively pursuing legal action. They aim to hold the former directors and key personnel of Multichain Foundation accountable for breach of contract and fraudulent misrepresentations that led to Fantom’s losses.
Fantom clarified that it does not bear responsibility or liability for the actions of third-party infrastructure partners. As part of their efforts to expedite asset recovery, they are pushing for the liquidation of Multichain Foundation.
Lowered Staking Requirements for Validators
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 increase network participation and accessibility for validators.
Bullish Projections for Fantom’s Price
Projections for Fantom’s price have been optimistic, indicating potential growth in the coming years. Currently, Fantom (FTM) is trading at $0.66, reflecting a price increase of over 90% in the last 30 days.
Hot Take: Fantom Foundation Recovers Lost Funds and Sets Precedent
The recent legal victory of the Fantom Foundation in recovering the $122 million lost during the Multichain exploit is a significant achievement. This success not only allows Fantom to reclaim its funds but also sets an important precedent for holding accountable those responsible for such incidents.
By obtaining a default judgment and authorizing the liquidation of Multichain Foundation’s assets, the court has demonstrated its support for the restitution of stolen assets. This ruling sends a strong message to other projects that they can seek legal recourse when faced with similar situations.
Fantom Foundation’s proactive approach in pursuing legal action showcases their commitment to protecting their community and investors. Their efforts to engage with former directors and key personnel before resorting to legal measures highlight their dedication to resolving issues amicably.
The lowering of staking requirements further demonstrates Fantom’s commitment to fostering network participation and inclusivity. By making staking more accessible, they are encouraging more individuals to contribute to the security and decentralization of the network.
With bullish projections for Fantom’s price, investors and enthusiasts have reason to be optimistic about the future. The recent price increase reflects growing interest and confidence in the project, which may continue to attract more participants and support.
The recovery of the lost funds and the legal victory achieved by Fantom Foundation are not only significant for the project but also for the broader crypto industry. They serve as a reminder that accountability and justice can prevail, even in a decentralized ecosystem.
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