$S BOOM - ARE YOU READY?
The High Court of Singapore has granted Sonic Labs' request to liquidate Multichain Foundation, allowing the blockchain technology firm to recover funds lost in a major 2023 exploit. Sonic Labs (formerly known as Fantom Foundation) received approval from Justice Kwek Mean Luck to wind up Multichain, with KPMG Singapore appointed as joint liquidators.
The liquidation follows a $210 million exploit on Multichain's platform in July 2023, which resulted in the platform's shutdown. Sonic Labs suffered losses amounting to approximately one-third of the total exploit value.
This court order comes after a previous Singapore high court ruling that favored Sonic's legal claims against Multichain for breach of contract and fraudulent misrepresentations related to the losses sustained in the exploit.
According to Sonic Labs CEO Michael Kong, the decision to pursue liquidation was made after "persistent absence" of Multichain despite multiple attempts to contact the foundation's key personnel. Notably, Multichain CEO Zhaojun He was arrested by Chinese authorities months before the exploit and has not made any public appearances since.
Kong stated that the team was "compelled" to forcibly liquidate Multichain, adding that "If Multichain had not hid from victims, this entire process would've been unnecessary and we would've saved more than a year."
The liquidation process could potentially lead to the return of lost funds to users if liquidators successfully work with other parties to recover the assets. Sonic Labs has previously indicated that its legal case aims to provide a pathway for other Multichain users to claim their lost assets as well.
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