A Singaporean high court ruled that Multichain Foundation owes $2.18 million to the Fantom Foundation for losses from a 2023 hack. The court’s decision allows Fantom to recover assets lost in a July exploit.
On July 6, 2023, Multichain experienced significant outflows from its cross-chain bridges, including Fantom’s, resulting in over $210 million in losses across multiple chains. Fantom secured a default judgment against Multichain on Jan. 30, 2024, pushing for its liquidation to recover the lost funds.
Fantom provided evidence that the losses were due to Multichain’s CEO, who controlled the assets stored in the bridge. The CEO had been detained by Chinese police, revealing that the project was not decentralized as claimed.
The ruling noted that Multichain admitted to the breach, highlighting a failure to comply with the User Agreement’s decentralization terms. The recent compensation is less than Fantom’s initial claim.
This case underscores the critical need for secure and decentralized control in cryptocurrency projects. As the crypto industry faces rising hack incidents, maintaining security and trust remains paramount.
