A top court in Singapore decided in favor of Sonic Labs's application to force the MultiChain Foundation to regain the stolen means during a hack of 2023.
In the judgment on May 9, before the Singapore Court of Justice, Justice KWEK gave Glück an application from Sonic Labs, formerly Fantom Foundation, to elucidate MultiChain rotting and appointment of liquidators from global audit, tax and advisory service KPMG.
Michael Kong, CEO of Sonic Labs, said in an announcement on May 14th to X that the team behind the layer 1 Sonic Blockchain was of the opinion that it had no selection but to make a lawsuit to land violently because his former employees were “completely uncooperative” and “hidden from the victims”.
“In the long run, the liquidators can now work with other parties to initiate the trial of the experiment to accumulate money that ought to ultimately be returned to users if these legal proceedings are successful,” said Kong.
Source: Michael Kong
In July 2023, the MultiChain Foundation experienced unusually large depressions that were later confirmed as hack, which led to the lack of assets across several chains, including Fantom, Ethereum, BNB, Cronos and Polygon.
The blockchain security company Beosin and Fantom estimated in a report in August 2023 that the entire losses for all chains were not less than 210 million US dollars.
Wind -up measures followed the legal victory
In January 2024, the High Court of Singapore granted a failure judgment as a part of Sonic Labs' legal lawsuit against MultiChain attributable to breach of contract, fraudulent false representations and claims that the Crisschain protocol had lost $ 122 million of its funds.
After the decision, Sonic Labs announced in March 2024 that it could use the legal victory to use for the court to alleviate the MultiChain Foundation and appoint a liquidator that corresponds to insolvency of Chapter 7 within the USA with a purpose to get better and distribute missing or frozen assets.
Previously, Sonic Labs had announced that they might use the legal victory to create a way for other victims of the MultiChain hack to delete claims for his or her losses.
MultiChain was closed in July 2024 attributable to a scarcity of company fund and was arrested by the Chinese police after the CEO, generally known as Zhaojun.
