Fantom is seeking liquidation from Multichain in an attempt to recover $122M from exploitation

The Phantom Foundation wants the Singapore High Court to declare the Multichain Foundation bankrupt, which it says will pave the way for the recovery of $122 million stolen from Multichain's Phantom Bridge last year.

In a March 4 blog post, Fantom wrote that the Singapore High Court on January 30, 2007 July 2023 to loot millions.

“In light of the recent decision, we are appointing the Multichain Foundation to wind up and liquidate the Phantom Foundation using its own financial losses to assist in the recovery and distribution of lost or frozen assets. It was said.

The court will assess the damages awarded to Phantom and require Multichain to pay them. Fantom said in a March 4th post that it doesn't expect Multichain to pay at this point, requiring a liquidator.

If approved, the liquidator will have, among other powers, the power to control Multichain Foundation's assets, recover transactions and acquire other assets for the purpose of paying creditors.

Since the July 2023 Multichain exploit, Phantom Foundation's management and legal team have been working tirelessly in multiple jurisdictions to map out a way forward for victims to recover part of their lost assets. We have an important update in this regard.

After all… pic.twitter.com/pUxyalPdMD

— Fantom Foundation (@FantomFDN) March 4, 2024

Fantom said the court ruling is only related to its own bankruptcy, but “plans to use this legal victory to establish a way for all users to file their claims against Multichain.”

“We will pursue the case until an inquest is appointed in the next few months,” he promised.

Multichain did not immediately respond to a request for comment on the court ruling.

Blockchain security firm Beosin and Fantom have pegged Multichain's total exploit losses at $210 million. The protocol has helped users connect currencies to multiple blockchains, including Phantom, Ethereum and Polygon, and in July last year they had a series of unauthorized withdrawals.

At the time, blockchain analytics firm Chainalysis speculated that it might be due to compromised administrator keys and that it could be an “inside job.”

Related: Hacked funds up 15% in 2024 compared to same period in 2023: Immunefi

Since the exploit, Fantom said it has been working to find a way to recover the lost assets, including filing a report with the Singapore police, where it joined the Multichain Foundation and launched legal action against the company.

Also, Multichain and its co-founder Zhaojun He are “under intensive investigation,” according to a Chinese police report.

He was arrested on undisclosed charges two months before the exploit in May 2023. His Telegram account was found to be active in January, but it has not been confirmed.

Magazine: Diffie's Billion Dollar Secret: Insiders Responsible for Hacking