Singapore High Court Orders Multichain Foundation to Pay $2.19 Million in Damages to Fantom Foundation

In a recent legal win for the Fantom Foundation, Singapore’s High Court ordered Multichain Foundation Ltd. and Multichain Pte Ltd. to pay $2

Singapore’s High Court has ordered Multichain Foundation Ltd. and Multichain Pte Ltd. to pay $2.19 million in damages to the Fantom Foundation in a recent legal victory for the foundation. This decision comes after Multichain failed to deliver 4.175 million FTM tokens or their equivalent market value, a rare occurrence in cryptocurrency-related lawsuits.

The case revolved around Multichain’s failure to deliver the 4.175 million fantom (FTM) tokens, with the assessment of damages being overseen by Honourable Judicial Commissioner Mohamed Faizal.

The court awarded Fantom Foundation $58,620.55 for the loss of the stablecoins, including USDT, USDC, and DAI. A more substantial $2,129,250 was received for the 4.175 million in FTM tokens, based on the current market price. The valuation method also used the token’s price on the date of valuation, April 14, 2023, and the mid-price obtained from Binance, the world’s largest digital currency trading platform.

The backdrop of this case was a large security incident on July 7, 2023, which saw over $127 million and material belonging to the Fantom Foundation being lost. It was later discovered that the breach occurred on September 18, 2023, and the court award was pegged on the new value of the lost assets.

Following the court ruling, the Fantom Foundation also highlighted the significance of the decision. They noted that their litigation aimed to recover the lost capital and begin the company’s winding-up process, leading to the appointment of a third-party liquidator. This liquidator, partially funded by the Fantom Foundation, will work to gather and return lost or frozen funds to all stakeholders.

As the case progresses towards the appointment of a liquidator, the crypto community will be watching closely to ensure that justice is ultimately served.

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