The Fantom Foundation, which oversees and contributes to the development of the Fantom blockchain, is attempting to recoup a portion of the funds it lost in July’s $200 million cross-chain router protocol Multichain hack.
The foundation is currently attempting to liquidate the business, which is comparable to filing for Chapter 7 bankruptcy in the United States, in order to collect and distribute any assets. The foundation claimed to have won a default judgement in Singapore in January when Multichain failed to reply.
Fantom stated in a recent post that “the Foundation plans to use this legal victory to pave a path for all users to lodge their claims against Multichain, even though the current judgement relates only to Fantom Foundation’s own losses.”
Fantom reported that the amount it lost was equivalent to one-third of what was taken from Multichain. Other misplaced possessions were dispersed over other blockchains, such as Fantom, Ethereum, and BNB Chain.
A bridging system called Multichain allowed users to move tokens between various blockchains. Days had passed since its CEO vanished, its technology was malfunctioning, and some of the nodes that maintained the platform’s security had been altered before the July hack.
Fantom had already sued the Multichain Foundation for deceptive advertising and breach of contract in order to recover losses. It stated that although it lacks the legal authority to collect money on behalf of users, the legal process will enable both users and victims to pursue comparable recovery options. In the past 24hours, Fantom’s FTM tokens saw a rise of up to 22% before declining.