Fantom Foundation seeks court intervention in the Multichain Foundation's financial woes, aiming to recover assets after a $210M exploit. Legal action follows a police report citing breach of contract and financial losses.
Fantom Foundation intends to file a petition with the court to request the winding up of the Multichain Foundation and the appointment of a liquidator to aid in recovering and distributing frozen assets.
This move comes after Fantom lodged a police report in Singapore, the base of Multichain, citing financial losses and contract breaches.
Fantom Seeks Restitution for Losses
As per a recent announcement, in July 2023, an exploit on the Multichain bridge resulted in the loss of over $210 million in assets across several chains, including Fantom, Ethereum, BNB, Cronos, Polygon, Arbitrum, zkSync, Optimism, and Moonbeam.
However, approximately one-third of these losses were linked to Fantom’s ecosystem.
These losses compounded other issues faced by Multichain at the time, such as the CEO's arrest and the subsequent removal of eight bridge tokens from the Binance crypto exchange.
In its recent statement, Fantom Foundation revealed that a Singapore court ruling favored Fantom.
Fantom also stated that it sought legal advice from lawyers in different countries, including the USA, China, Hong Kong, and Singapore, to determine the best course of action.
With the court’s approval, the liquidator will now have the necessary resources to help trace and recover assets.
In July 2023, Fantom Network co-founder Andre Cronje expressed surprise at the network’s vulnerabilities.