- A Singapore court awarded Fantom Foundation over $2 million in damages against Multichain Foundation.
- Fantom aims to appoint a liquidator to recover and distribute assets affected by the Multichain exploit.
In a notable legal triumph, Fantom obtained a $2.18 million judgment against Multichain in a Singapore court for losses caused by a crypto hack in 2023.
The Fantom Foundation highlighted this development via a tweet, emphasizing Singapore Judicial Commissioner Mohamed Faizal’s verdict against Multichain Foundation. On June 3, the Singapore High Court held a damages assessment hearing, which resulted in this current judgment.
Miao Gu, a valuation expert from the specialty firm Secretariat International, and Eli Bernstein, general attorney for the Fantom Foundation, presented evidence at the hearing.
Fantom Foundation Update on Judgment Against Multichain.
🔗 https://t.co/Pi5RXJmhNW pic.twitter.com/ooseYW0NC2
— Fantom Foundation (@FantomFDN) July 8, 2024
Fantom Secures $2.18 Million in Compensation Due to Breach
Fantom is entitled to $2.18 million in compensation as a result of the victory. Mohamed Faizal stated, “The claimant’s position is that the breach was possible because the CEO of the First Defendant had ultimate privileges and control over the cryptocurrency assets stored in the Multichain Bridge.” He added:
“The First Defendant had admitted as much in a public posting on Twitter. This contravened what the Claimant contends to be the key term in the User Agreement, which stated that the Multichain Bridge was controlled by decentralised safe and secure MPC nodes that are incapable of one-person control.”
This declaration supports the court’s conclusion that Multichain’s CEO played a critical role in the breach because of their authority over the assets.
Additionally, the Fantom Foundation claimed in a claim that they are liquidating Multichain and choosing a third-party liquidator for whom they will pay.
This stage tries to help recover and distribute the lost or frozen assets to all impacted parties. This liquidation process is crucial for Fantom to guarantee that the assets are properly managed and refunded to people who have experienced losses as a result of the attack.
At the time of writing, Fantom’s native token, FTM, was trading at around $0.4934 on the cryptocurrency market, reflecting a 10.97% growth over the last 24 hours. However, CoinMarketCap data reveals a 9.54% bearish trend over the last week.
Previously, CNF reported that the Fantom Foundation had formally launched the Sonic Proposal, which aimed to facilitate the network’s conversion.
This plan included the allocation of $120 million in FTM tokens to fund the Sonic network’s launch. This strategic move by the Fantom Foundation is part of their larger efforts to strengthen the network and improve its capabilities, proving their commitment to ongoing innovation and development in the crypto field.
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