Fantom Foundation Takes Legal Action Against Multichain
The Fantom (FTM) Foundation has filed a lawsuit against the Multichain Foundation for breach of contract and fraudulent misrepresentations following an exploit that resulted in a $210 million loss. The exploit, which occurred in July 2023, affected multiple chains including Fantom, Ethereum (ETH), Binanceโs BNB, Cronos (CRO), Polygon (MATIC), Arbitrum (ARB), zkSync, Optimism (OP), and Moonbeam (GLMR). Fantomโs ecosystems suffered losses of approximately one-third of the total damage. The recovery process has been challenging due to legal complexities, jurisdictional issues, uncooperative former directors, and ongoing police investigations.
To pursue justice and recover the lost assets, the Fantom Foundation has taken several measures:
- Filed a police report in Singapore and Kunming, China
- Engaged legal counsel in the United States, China, Hong Kong, and Singapore
- Partnered with TRM Labs for forensic analysis of asset flow
- Commenced legal action against the Multichain Foundation in Singapore
Empowered To Liquidate Multichain
The Fantom Foundation has received a default ruling by Judge Tan Boon Heng of the General Division of the High Court of Singapore in favor of their claim. This ruling allows them to petition the court to dissolve the Multichain Foundation and appoint a court-appointed liquidator. The liquidator will have specialized expertise and legal powers to trace, recover, and distribute missing or frozen assets on behalf of all creditors. This sets an important precedent for all affected users to pursue their claims against Multichain.
Riding The Bull Market
Despite the ongoing legal battle, the native token of Fantom, FTM, has seen significant gains in the market:
- 67% increase in year-to-date
- Over 92% gains in the past thirty days
- 50% and 57% gains in the past seven and fourteen days respectively
FTM reached a 20-month high of $0.751 before retracing and currently trading at $0.681 with a modest recovery of 1.8%.
Hot Take: Fantom Foundation Seeks Justice and Recovery
The Fantom Foundation is taking decisive steps to recover lost assets and seek justice following the Multichain exploit that resulted in a $210 million loss. By filing a lawsuit against the Multichain Foundation for breach of contract and fraudulent misrepresentations, they aim to hold those responsible accountable for their actions. The recent default ruling in their favor allows them to pursue further legal action and potentially liquidate Multichain, leading to the recovery and distribution of assets on behalf of all creditors.
Despite these challenges, the FTM token has experienced significant gains in the market, reflecting investor confidence in Fantomโs long-term prospects. This ongoing legal battle highlights the importance of accountability and security in the cryptocurrency industry, as well as the resilience and determination of projects like Fantom to overcome obstacles and protect their communityโs interests.
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