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Singapore Court Orders Liquidation of Multichain Foundation Following $210M Hack
ByAinvest
Friday, May 16, 2025 8:52 am ET1min read
The Singapore High Court has authorized Sonic Labs to force the liquidation of the Multichain Foundation, following a 2023 hack that caused over $210 million in losses. KPMG has been appointed as the official liquidator to oversee asset recovery and compensate affected users. This legal victory sets a precedent for the crypto industry, promoting accountability and user protection.
The Singapore High Court has authorized Sonic Labs to force the liquidation of the Multichain Foundation, following a significant 2023 hack that resulted in over $210 million in losses. The ruling, granted by the High Court on May 9, 2025, marks a significant milestone in the crypto industry's push for accountability and user protection. KPMG has been appointed as the official liquidator to oversee asset recovery and compensation for affected users.Sonic Labs, formerly known as the Fantom Foundation, initiated legal proceedings against Multichain in January 2024, alleging breach of contract, fraud, and the loss of $122 million of its funds. The court granted a default judgment ruling in favor of Sonic Labs, but the company faced challenges in reaching the Multichain team, leading to a petition to wind up the Multichain Foundation and appoint a liquidator. The Singapore High Court's decision now enables KPMG to oversee the liquidation of Multichain Foundation's assets [1].
The 2023 Multichain exploit affected multiple blockchain networks, including Fantom, Ethereum, and BNB Chain. The incident highlighted the vulnerabilities of cross-chain bridges and the need for robust security measures. The whereabouts of Multichain CEO Zhaojun were unknown for some time until it was revealed that he was arrested by Chinese authorities due to the fallout of the breach [1].
The legal victory sets a precedent for the crypto industry, demonstrating the effectiveness of traditional legal systems in seeking justice and restitution. It underscores the growing trend of leveraging legal frameworks to address the challenges posed by the pseudonymous and borderless nature of cryptocurrencies. This development is seen as a positive step towards enhancing the legitimacy and protection of users in the crypto sector.
References:
[1] https://www.cryptopolitan.com/sonic-labs-multichain-foundation-liquidation/
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