Explosive Ruling! Multichain Foundation Forced into Liquidation, Battle to Recover Hundreds of Millions in Assets Begins

The Singapore High Court has made a significant ruling, supporting Sonic Labs' push for the bankruptcy liquidation of the Multichain Foundation, with KPMG appointed as the liquidator to fully take over the legal proceedings to recover the funds stolen by hackers in 2023.

On May 9, the court approved Sonic Labs' request, declaring Multichain bankrupt. The hacker incident involved multiple mainchain assets including Fantom, Ethereum, and BNB, with total losses exceeding $210 million. Michael Kong, CEO of Sonic Labs, revealed that former Multichain team members refused to cooperate, forcing the company to resort to legal means to forcibly shut down the foundation.

As early as the beginning of 2024, the court had issued a default judgment, determining that Multichain was involved in default and fraud, with losses amounting to as much as $122 million. Sonic Labs subsequently formally requested liquidation, initiating asset recovery and compensation procedures to assist victims in claiming damages.

Due to depleted operating funds and executives being detained, Multichain announced its closure in July 2024. This ruling is not only a response to the hacking incident but also opens a new chapter in the cryptocurrency field regarding the recovery of stolen funds, with future liquidation actions being closely watched.