Fantom Foundation Wins Legal Battle Against Multichain, Seeks to Recover Lost Funds
Fantom Foundation, the team behind Fantom Network, has achieved a favorable outcome in its legal action against Multichain, a cross-chain protocol. The Foundation suffered a major exploit in July 2023, resulting in a loss of over $210 million in assets. In response, it filed a lawsuit against Multichain Foundation for breach of contract and fraudulent misrepresentations.
Fantom’s Tireless Efforts to Recover Lost Assets
Since the exploit, Fantom Foundation’s management and legal team have been diligently working across multiple jurisdictions to find a way for victims to partially recover their lost assets. The company recently announced an important update regarding this matter.
Legal Victory for Fantom
The High Court of Singapore has awarded a default judgment ruling in favor of Fantom Foundation. This favorable decision acknowledges the Foundation’s claims against Multichain and sets the stage for further action to recover the lost funds.
Seeking Multichain Liquidation for Asset Recovery
In order to potentially recover the lost funds, Fantom has filed a petition with the Singapore court to appoint a liquidator for Multichain. The appointment of a court-appointed liquidator will provide the necessary expertise and legal powers to trace and recover the assets. Additionally, this process will ensure that all creditors’ interests are taken into account.
Fantom’s Plans for Asset Recovery
Fantom intends to leverage its legal victory against Multichain to enlist qualified experts who will assist in recovering and distributing the assets. By utilizing this approach, Fantom aims to maximize the chances of recovering the funds lost in the exploit.
Further Challenges Faced by Fantom Foundation
In addition to the July 2023 exploit, the foundation also experienced another hack in October, resulting in a loss of approximately $6.7 million worth of digital assets. According to Certik, a blockchain security firm, the attackers managed to siphon off nearly $657,000 worth of crypto assets during this incident.
Hot Take: Fantom Foundation Fights Back and Seeks Justice
Fantom Foundation’s legal battle against Multichain represents its determination to hold accountable those responsible for the significant losses incurred due to the exploit. With the favorable judgment from the High Court of Singapore, Fantom has taken a major step forward in its efforts to recover the lost funds. By seeking Multichain liquidation and utilizing qualified experts, Fantom aims to maximize the chances of a successful recovery process.
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