Fantom Foundation, a blockchain company, recently won a legal battle against Multichain in the High Court of Singapore. This victory came after a default judgment was issued against Multichain earlier this year, followed by an assessment of damages hearing in June.
During the hearing, evidence was presented by Fantom Foundation’s general counsel, Eli Bernstein, and a valuation expert from Secretariat International. Surprisingly, Multichain’s representatives did not attend the proceedings. As a result, Judicial Commissioner Faizal awarded Fantom $2.1 million for the losses incurred due to Multichain’s actions.
The breach in question was related to the control of cryptocurrency assets in the Multichain Bridge. It was found that Multichain’s leadership, rather than decentralized MPC nodes as stated in the User Agreement, had ultimate control over these assets. Multichain publicly acknowledged the breach on social media after it was exploited.
While the judgment focused on compensating Fantom for its losses, the broader aim of the Foundation’s legal action is to wind up Multichain and appoint a third-party liquidator. This liquidator, partly funded by Fantom Foundation, will work towards recovering and distributing the missing or frozen assets to all affected parties.
Nicolas Tang, Fantom Foundation’s lawyer, expressed his satisfaction with the High Court’s decision, emphasizing its significance for the entire cryptocurrency community. He highlighted that this ruling reinforces the legitimacy of digital assets and creates a fair environment for innovation in the industry.
Moving forward, Fantom Foundation plans to support the appointment of a liquidator in the coming months. They will provide necessary information and resources to aid in the recovery efforts, as well as assist in the assessment and distribution of assets to affected parties.
This legal victory not only benefits Fantom Foundation but also sets a precedent for how digital assets are viewed and protected under the law. It showcases the importance of upholding legal standards in the cryptocurrency sector to ensure a transparent and secure environment for all stakeholders.
