Fantom Opens Proposal for Refunds in Multichain $130M Exploit

On July 6, 2023, the cryptocurrency world was rocked by a significant exploit involving the multichain bridge.  The exploit resulted in substantial outflows from the bridge, raising alarms across the industry. As a consequence of the exploit, the Multichain protocol made the difficult decision to suspend its operations, further highlighting the severity of the situation.

Among the most affected by this exploit was Fantom, a prominent player in the cryptocurrency space. The exploit saw assets totaling a staggering $130 million affected within Fantom’s ecosystem. This sudden and substantial loss underscored the vulnerability of even the most robust platforms within the crypto realm.

In a recent turn of events, there came a glimmer of hope for Fantom and its affected stakeholders. The High Court of Singapore delivered a default judgment ruling in favor of Fantom Foundation on January 30, 2024. This ruling represents a significant milestone in the legal battle against the exploit, signaling progress towards seeking redress for the damages incurred.

Recovery Efforts and Legal Proceedings

Fantom Foundation is actively pursuing avenues to recover the damages inflicted by the exploit. Central to this effort is the planned issuance of a Statutory Demand to Multichain, a crucial step in the legal process. The Foundation anticipates a response from Multichain as they navigate through the complexities of the legal framework.

Furthermore, there exists the possibility of petitioning the court to wind up Multichain Foundation, thereby initiating the appointment of a liquidator. The appointment of a liquidator holds significant promise in the pursuit of recovery efforts, as they possess specialized expertise in asset tracing and recovery.

The role of the liquidator extends beyond mere asset recovery. They will be entrusted with the task of distributing recovered funds and assets, ensuring equitable restitution for affected stakeholders. Additionally, the liquidator’s mandate includes the recovery of community assets, including frozen stablecoins valued at approximately USD$65 million.

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Participation in Lawsuit and Refund Eligibility

For affected users seeking recourse in the aftermath of the exploit, participation in the ongoing class-action lawsuit is paramount. However, eligibility for future refunds is contingent upon active engagement in the legal process. Users must exercise their voting rights on the proposal presented to secure their eligibility for potential refunds.

In light of the evolving legal landscape, affected users are urged to act promptly within the specified timeline to safeguard their interests. The significance of user participation cannot be overstated, as it serves as a collective effort to hold accountable those responsible for the exploit.

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