Fantom seeks to liquidate Multichain Foundation to recover assets from July exploit


Fantom Foundation, a blockchain platform for decentralized finance, announced Monday in a blog post that it plans to petition the court to liquidate Multichain Foundation to recover missing assets.

Fantom said in the blog post that the amount its ecosystem lost accounts for around one-third of the $210 million exploited off of the cross-chain protocol Multichain bridge last July.

In January, the High Court of Singapore made a default judgment in favor of Fantom on its legal action against Multichain for alleged breach of contract and fraudulent misrepresentations, according to the post.

With this legal victory, the Singaporean court is expected to appoint a liquidator to assess Fantom’s damages resulting from Multichain’s security breach and help recover and distribute the missing or frozen assets, according to Fantom.

“Given the persistent absence of Multichain, we do not expect this to occur, at which point the Foundation will petition the court to wind up the Multichain Foundation and appoint a liquidator,” Fantom said. The foundation’s decision to take legal action came after multiple attempts to engage with key personnel of Multichain, according to Fantom.

Fantom’s case could provide a pathway for other Multichain users to claim lost assets with the default judgment ruling. Multichain’s exploit resulted in a total loss of $210 million across chains, including BNB, Ethereum, Polygon and Arbitrum. Fantom added that its founder is subject to an active investigation in Kunming, China.

The DeFi platform has also opened a proposal for a class action lawsuit against Multichain for affected users to take part in, according to its X post.

Source : The Block by Danny Park / Mar 5, 2024 logo


240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma


The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act. How we keep your money safe.