A Singapore High Court ruled in favor of the movement of Sonic Labs to force the Multichein Foundation to turn around in an effort to recover funds stolen in a 2023 hack.
In the May 9 judgment on the Singapore Supreme Court, the justice kwek means luck granted A request from Sonic Labs, former Fantom Foundation, to declare Multichain bankruptcy and appoint fluids from global audit, tax and KPMG counseling services.
Sonic Labs CEO Michael Kong Says In a May 14th statement to X that the team behind the Layer 1 Sonic Blockchain It felt that it had no choice but to file a lawsuit to force the multichein to boost because its former employees were “completely unattended” and “hiding from the victims.”
“Continuing, liquidators can now start working with other parties to start the process of trying to get funds that should return to users if legal proceedings are successful,” Kong said.
In July 2023, the Multichein foundation has experienced an abnormally large flowIt was later confirmed as a hack, leading to the loss of properties in many chains, including fantom, Ethereum, BNB, Cronos and Polygon.
Blockchain Security Firm Beosin and Fantom Attached In an August 2023 report that the total losses for all chains were at least $ 210 million.
Wind up action followed the legal win
Singapore’s High Court has issued a default judgment judgment in January 2024 As part of the legal action of Sonic Labs against Multichein for breaking the contract and fraudulent misinterpretation after Fantom claimed the Crosschain protocol has lost $ 122 million of its funds.
Related: Multichain’s ‘mysterious backward’ has the whiffs of a ‘rug pull’ – chainalysis
Following the decision, the Sonic Labs said in March 2024 that it would obtain the legal win to petition the court to wind the Multichein Foundation and appoint a liquid, equivalent to a chapter 7 losses in the US, to help recover and distribute missing or frozen.
In the past, Sonic Labs indicated that it had planned to use the legal win to make a path for the rest of Victims of multichein hack To file claims for their losses too.
Multichein I -shut down in July 2024 Due to the lack of operational funds, and after its CEO, known as Zhaojun, was confined by the Chinese police.
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