The High Court of Singapore has ruled in favor of the Fantom (FTM) Foundation in a major legal dispute over the Multichain cross-chain protocol.
In order for Fantom Foundation to recoup the $122 million it lost during the Multichain Fantom bridge exploit in July 2023, the court’s default judgment permits the liquidation of Multichain Foundation’s assets.
The Honorable Registrar Tan Boon Heng of the General Division of the High Court of Singapore delivered a default judgment finding in favor of the project on January 30, 2023, which is retroactively applicable from November 30, 2023, according to a blog post published by the Fantom Foundation on March 4.
This decision has significantly advanced the $122 million in assets lost in Multichain’s Fantom bridge protocol in July. Furthermore, in an effort to speed up the recovery of the misappropriated monies, the Fantom Foundation is aggressively advocating for the Multichain Foundation’s dissolution.
The default ruling represents a significant turning point in the resolution of the matter in addition to approving Fantom’s request. Over $210 million worth of assets from several chains, including Fantom, Ethereum, BNB, Cronos, Polygon, Arbitrum, zkSync, Optimism, and Moonbeam, were lost as a result of the Multichain Fantom bridge vulnerability. Of those losses, almost one-third were borne by the Fantom ecosystem.
Fantom filed a lawsuit against the former directors and important members of the Multichain Foundation for breach of contract and deceptive misrepresentations that caused Fantom’s damages after attempting to communicate with them in vain.
The foundation made it clear in a blog post that it is not liable or responsible for the acts of its third-party infrastructure partners. Fantom hopes to move the case forward in the upcoming months until a liquidator is named.
Fantom will support the liquidator’s asset recovery operations by offering all pertinent information and research materials. Fantom deliberately reduced the minimum stake requirements for validators from 500,000 FTM to 50,000 FTM at the beginning of 2024.
This change aimed to increase validators’ accessibility and network engagement. According to optimistic forecasts, Fantom’s price has been predicted to rise in the upcoming years. Fantom (FTM) is currently trading at $0.66, a 90% price rise in the last 30 days as of the time of this writing.
