Fantom Foundation Wins Lawsuit Against Multichain In Singapore Court

Fantom Foundation won the lawsuit against Multichain in Singapore Court (Photo; Doc. Bitcoin ng)

JAKARTA - Recently, the Singapore High Court ordered the Multichain Foundation to pay compensation of US$2.18 million (around Rp35.4 billion) to the Fantom Foundation. This decision follows Fantom's huge loss due to crypto hacking in July 2023.

According to CCN information, on July 6, 2023, the crypto world was rocked by a massive hack that resulted in the theft of more than 210 million US Dollars (approximately IDR 3.4 trillion) in the form of crypto assets from various blockchains, including Ethereum, BNB, Cronos, Polygon, Arbitrum, zkSync, Optimism, and Moonbeam. The Fantom Foundation, which manages the Fantom blockchain, became one of the main victims of this incident.

The Fantom Foundation immediately took legal action against Multichain and succeeded in obtaining a default decision on January 30, 2024. Since then, Fantom has continued to work hard to liquidate Multichain's assets to recover the stolen funds. The court's recent decision was a significant step in their efforts.

In a hearing on June 3, Fantom presented evidence showing that Multichain CEO Zhaojun He has full control over crypto assets on Multichain Bridge. This contradicts Multichain's claim that their platform is decentralized. The court ruled that Multichain effectively acknowledged this centralized control in public statements on social media platform X.

This ruling shows that Multichain violates a user agreement stating that Multichain Bridge is governed by a secure and decentralized multiparty computing node, which ensures no individual has a single control. Although the compensation provided is smaller than the total loss claimed by Fantom, this decision is considered a major win by the Fantom Foundation.

The Fantom Foundation emphasizes that although this decision is specific to their own losses, their main aim is to initiate Multichain liquidation and appoint third-party liquidators. This liquidator, partially financed by Fantom, will be responsible for restoring and distributing lost or frozen assets to all parties affected by the Multichain hack.