Focusing on decentralized finance (DeFi), the leading Blockchain network Fantom (FTM), backed by the Fantom Foundation, announced plans to initiate necessary legal proceedings to liquidate the Multichain Foundation in an effort to recover lost funds. Fantom’s initiative became a beacon of hope for other blockchains that suffered fund losses.
Fantom Takes Action Against Multichain
In a blog post dated March 4, Fantom announced preparations to file a lawsuit for the liquidation of the Multichain Foundation following the loss of funds worth approximately one-third of the $210 million stolen from the Multichain cross-chain protocol bridge last July.
According to the blog post penned by Fantom’s management, the case against Multichain filed by Fantom in the Singapore High Court was decided in favor in January. The court found Multichain in default for breach of contract and fraudulent misrepresentation. With this legal victory, Fantom now awaits the appointment of a liquidator by the Singapore court to assess the damages resulting from Multichain’s security breach and to assist in the recovery and distribution of lost or frozen funds.
Fantom’s move to initiate legal action and liquidation could provide a potential path for other blockchains affected by the hack attack to reclaim their lost funds.
One of the Largest Hack Attacks in Crypto History
It is known that Multichain was the target of a major hack attack in 2023. The hack, which resulted in the theft of $210 million in funds, has been recorded as one of the largest hack attacks in the history of cryptocurrency.
The attack saw the theft of funds totaling $210 million from various blockchain networks including Fantom, BNB (BNB), Ethereum (ETH), Polygon (MATIC), and Arbitrum (ARB).
