The Fantom Foundation is attempting to recoup $122 million that was lost in a breach that occurred a year ago by requesting a declaration of bankruptcy for the Multichain Foundation from the Singapore High Court.
Fantom alleges that Multichain made false assertions and violated their contract, which is what caused the loss. After a default judgment was rendered in their favor on January 30, Fantom intends to utilize the money they lost to force Multichain to file for bankruptcy and name a liquidator to locate and distribute any missing assets.
Fantom anticipates resistance from Multichain and intends to seek the involvement of a liquidator if required. The court will determine damages and demand restitution from Multichain. If authorized, the liquidator would have the authority to take control of Multichain’s assets, undo transactions, and obtain money to pay creditors back.
Fantom declared that although the court’s decision focuses on its losses, it plans to exploit this victory to allow all users to bring lawsuits against Multichain.
Together with Fantom, Beosin, a blockchain security company, calculated Multichain’s total damages from the exploit to be $210 million.
