Significant legal victory for Fantom Foundation as court grants default judgment enabling recovery of funds lost in Multichain bridge exploit. Fantom lowers staking requirements. Bullish price forecasts for FTM.
The legal battle between the Fantom (FTM) Foundation and the Multichain cross-chain protocol has reached a pivotal moment in the High Court of Singapore.
A significant ruling from the court has favored the Fantom Foundation, granting them authority to liquidate assets belonging to the Multichain Foundation. This move is aimed at recovering the substantial loss of $122 million incurred during the Multichain Fantom bridge exploit in July 2023.
According to a recent blog post dated March 4, the Fantom Foundation revealed that the Honorable Registrar Tan Boon Heng of the General Division of the High Court of Singapore issued a default judgment ruling on Jan. 30 in favor of the project. This ruling, retroactively effective from November 30, 2023, marks a significant step towards asset recovery.
The judgment represents a crucial milestone in the ongoing efforts to reclaim funds lost in the Multichain’s Fantom bridge protocol last year.
Furthermore, the Fantom Foundation is actively advocating for the liquidation of the Multichain Foundation to expedite the recovery process. This default judgment not only validates Fantom’s pursuit but also signals progress in resolving the situation.
The exploit of the Multichain Fantom bridge led to significant losses totaling over $210 million across various chains, including Fantom, Ethereum, BNB, Cronos, Polygon, Arbitrum, zkSync, Optimism, and Moonbeam. Fantom ecosystem alone bore approximately one-third of these losses.
After unsuccessful attempts to engage with the former directors and key personnel of the Multichain Foundation, Fantom initiated legal action against them for breach of contract and fraudulent misrepresentations.
Fantom clarified in its blog post that it bears no responsibility or liability for the actions of third-party infrastructure partners.
In the upcoming months, Fantom aims to make further progress until a liquidator is appointed. The foundation pledges to provide comprehensive support to the liquidator by furnishing all relevant knowledge and investigative material for asset recovery.
In early 2024, Fantom strategically revised the minimum staking requirements for validators, reducing it from 500,000 FTM to 50,000 FTM. This adjustment seeks to enhance network participation and make validation more accessible.
Market forecasts for Fantom remain optimistic, with projections indicating potential growth in the coming years. At present, Fantom (FTM) is being traded at $0.66, reflecting a remarkable price surge of over 90% in the past 30 days.