Singapore High Court Orders Multichain Foundation to Compensate Fantom Foundation for $210M Hack Losses

The High Court of Singapore has ordered the Multichain Foundation, a cross-chain router protocol, to compensate the Fantom Foundation, a layer-1 platform, for losses incurred during a $210 million hack.

A Singapore High Court has ordered cross-chain router protocol Multichain Foundation to compensate layer-1 platform Fantom Foundation for losses incurred during a $210 million hack last year.

In July 2023, abnormal outflows were detected from Chinese cross-chain protocol Multichain Foundation, which were later confirmed to be a hack. Several protocols integrated with the chain became victims of the attack, losing over $210 million in assets across chains like Fantom, Ethereum, BNB, Cronos, Polygon, Arbitrum, zkSync, Optimism and Moonbeam.

Fantom Foundation, among the protocols that suffered losses, reported the matter to the Singapore High Court, seeking compensation for the losses incurred.

During a recent court hearing on June 3, while Fantom’s representatives presented evidence collected to the Singapore court, Multichain’s representatives were notably absent from the proceedings.

According to Fantom’s representatives:

“The court found that Multichain admitted this claim on X and breached the user agreement as well.”

Fantom Foundation recovers losses

On July 8, the court ordered Multichain Foundation to pay Fantom $2.187 million for losses suffered during the hack. However, Fantom had earlier claimed that its ecosystem lost about one-third of the total losses, which amounted to $210 million.

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Prior to the second quarter, losses from hacks and scams had been declining, with Immunefi reporting a 23% reduction in Q1. This decline continued through April and most of May but peaked at the end of May and June.

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