Fantom Foundation pursues legal action following the $130 million scam, supported by a recent decision from the High Court.
We suggest users actively participate in class-action lawsuits to aid recovery efforts and secure reimbursements.
The fallout from the multichain protocol spurs proactive actions as stakeholders band together to seek justice and reparations.
On July 6, 2023, a major multichain bridge exploit surfaced, shaking the cryptocurrency community. The exploit caused significant outflows from the bridge, alarming the industry. The Multichain protocol had to make the painful decision to halt operations due to the exploit, underscoring the gravity of the circumstances.
One of the biggest victims of this attack was Fantom, a well-known participant in the Bitcoin market. Within Fantom’s ecosystem, the exploit impacted assets valued at an astounding $130 million. This significant and unexpected loss highlighted how even the most robust platforms in the cryptocurrency space can be vulnerable.
A recent turn of events offered Fantom and its impacted stakeholders some hope. On January 30, 2024, the Singapore High Court issued a default judgment decision in favour of the Fantom Foundation. This decision marks a significant turning point in the legal fight against the exploit and represents a step in the right direction toward obtaining compensation for the losses suffered.
Recuperation Attempts and Court Cases
The Fantom’s Foundation is aggressively seeking ways to get compensated for the harm caused by the exploit. The intended issuance of a Statutory Demand to Multichain, an essential stage in the legal procedure, is at the centre of this endeavour. The Foundation waits for Multichain to respond as they work through the legal maze.
Furthermore, there may be a court petition to file for winding up the Multichain Foundation, initiating the process of appointing a liquidator. The appointment of liquidators, who possess high skills in locating and recovering assets, promises a positive step towards recovery.
The liquidator’s responsibilities go beyond just recovering assets. They will allocate the assets and money seized, ensuring fair compensation for impacted parties. The liquidator’s mission also encompasses retrieving communal assets, including frozen stablecoins with an approximate worth of USD $65 million.
Litigation Involvement and Eligibility for Refund
It is critical that impacted users who are looking for justice following the exploit join the current class-action lawsuit. However, participation in the legal process is required to be eligible for future returns. Users must use their voting rights on the proposed amendment to ensure they qualify for any potential refunds.
In light of the changing legal environment, we advise impacted users to take immediate action to protect their rights within the allotted time frame. It is impossible to overestimate the importance of user participation since it represents a group effort to hold the exploit’s perpetrators accountable.
