Fantom Foundation seeks to liquidate Multichain assets! Want to recover US$60 million in losses

The public chain Fantom Foundation tweeted that it is planning to petition the Singapore High Court to declare the Multichain Foundation bankrupt and appoint a liquidator to help recover and distribute lost or distributed assets. Frozen assets. It is reported that the agreement suffered losses of more than $65 million in the Multichain incident last year.

Reviewing the Multichain asset loss incident

In July 2023, the famous cross-chain protocol Multichain reported rumors that the protocol was hacked and team members were taken away by the Chinese police. At the same time, US$126 million in user assets It was transferred abnormally, causing multiple public chains to be affected, including networks such as Fantom, Ethereum, and Polygon.

Subsequently, Multichain officials confirmed that the relevant person in charge, Zhao Jun, had control of the protocol’s private key and server, and that the relevant equipment had been seized by the authorities. At present, the lost assets have not been recovered and their ownership remains unclear.

As an early infrastructure supported by Fantom, the Fantom Foundation subsequently announced the permanent suspension of Multichain.

The court initially ruled in favor of Fantom

The latest announcement from the Fantom Foundation stated that they had filed a lawsuit against the Multichain Foundation last year, accusing it of breach of contract and fraud. The move comes in an attempt to seek compensation for the damage caused to the Fantom ecosystem, after repeated attempts to contact Multichain Foundation members went unanswered.

Now, the Singapore High Court has issued a default judgment (Defaultjudgment) against the Multichain Foundation on January 30, which will be beneficial to Fantom’s subsequent compensation cases: Although Fantom has no legal liability for the actions of third-party infrastructure partners There is no liability and no legal right to recover funds on behalf of users, but our legal team still enables other victims to recover their lost assets by tracing the flow of funds, filing reports with authorities, and filing lawsuits.

Fantom Foundation seeks to liquidate Multichain assets

Therefore, Fantom Foundation also plans to use the judgment to petition the court to declare Multichain Foundation bankrupt and liquidate its assets: In view of the recent judgment , we will petition the court for the financial losses of the Fantom Foundation to request the appointment of a liquidator to help recover and distribute the lost or frozen assets (equivalent to Chapter 7 bankruptcy proceedings in the United States).

In other words, if the petition is approved, the court will assess the losses suffered by Fantom and recover and take over the assets of the Multichain Foundation through the liquidator to repay the funds to creditors.

The statement stated: Although the current judgment only involves the Fantom Foundation’s own losses, we will use this judgment to open up a channel for all affected users to effectively claim compensation from Multichain.

Finally, the Fantom Foundation also released a proposal vote to all users to understand the specific number of victims and the amount of compensation; and stated that all affected users must vote on the proposal to be eligible for future compensation.

The above is the detailed content of Fantom Foundation seeks to liquidate Multichain assets! Want to recover US$60 million in losses. For more information, please follow other related articles on the PHP Chinese website!