Singapore High Court Orders Multichain to Pay Fantom Foundation $2.1M for Losses Suffered
The High Court of Singapore has ruled in favor of the Fantom Foundation, ordering the Multichain Foundation, a cross-chain router protocol, to pay $2.1 million in compensation for losses incurred during a 2023 hack.
The hack took place in July last year when the Multichain Foundation experienced unusually large outflows, later confirmed to be a result of a hack.
Numerous protocols connected to the chain fell victim to the attack, resulting in over $210 million in asset losses across multiple chains, including Fantom, Ethereum, BNB, Cronos, Polygon, Arbitrum, zkSync, Optimism, and Moonbeam.
In response to the financial losses suffered, the Fantom Foundation brought the matter before the Singapore High Court, seeking compensation for the damages incurred.
During a court hearing held on June 3, representatives from Fantom presented evidence to the court, while Multichain’s representatives were absent from the proceedings.
Fantom’s representatives argued that the breach occurred due to the CEO of Multichain having ultimate privileges and control over the cryptocurrency assets stored in the Multichain Bridge.
The court, after considering the evidence presented, found that Multichain had admitted to the claim and had breached the user agreement.
Consequently, on July 8, the court awarded the Fantom Foundation $2.1 million for the losses suffered during the hack.
Fantom Foundation Update on Judgment Against Multichain.
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