Fantom Launches Recovery Plan For Funds Lost In Multichain’s $200M Exploit, FTM Soars
05 Marzo 2024 - 4:30PM
NEWSBTC
The Fantom (FTM) Foundation has taken decisive steps to recover
assets lost in the Multichain exploit that devastated various
chains, including its own, resulting in a staggering $210 million
loss. After failed attempts to engage with the Multichain
Foundation, the Protocol has announced that it filed a lawsuit for
“breach of contract” and “fraudulent misrepresentations.”
Fantom Foundation Takes Legal Action Against Multichain The
exploit, which occurred in July 2023, targeted the Multichain
bridge and affected multiple chains, including Fantom, Ethereum
(ETH), Binance’s BNB, Cronos (CRO), Polygon (MATIC), Arbitrum
(ARB), zkSync, Optimism (OP), and Moonbeam (GLMR). Fantom’s
ecosystems suffered losses of approximately one-third of the total
damage. In addition, the Fantom Foundation claims that the recovery
process has faced numerous challenges due to legal complexities,
jurisdictional issues, uncooperative former directors, and ongoing
police investigations. Related Reading: Bitcoin On The Brink, Price
Soars Above $68,000 – Will BTC Break Its 2021 Record? To pursue
justice, the Fantom Foundation initiated several measures. They
filed a police report in Singapore, where the Multichain Foundation
is incorporated, and in Kunming, China, where Multichain and its
founder are under investigation. Legal counsel was engaged in
the United States, China, Hong Kong, and Singapore to navigate the
diverse jurisdictions involved. Additionally, Fantom partnered with
the blockchain intelligence firm TRM Labs to conduct a
comprehensive forensic analysis of the asset flow. As a decisive
move, legal action against the Multichain Foundation for losses
incurred by Fantom was commenced in Singapore. Empowered To
Liquidate Multichain The Fantom Foundation has also disclosed that
a recent default ruling by Judge Tan Boon Heng of the General
Division of the High Court of Singapore has ruled in favor of the
Protocol’s claim. According to the foundation’s blog post, the
ruling paves the way for the protocol to petition the court to
dissolve the Multichain Foundation and appoint a court-appointed
liquidator. The liquidator, equipped with specialized expertise,
legal powers, and authority to act on behalf of Multichain, will
reportedly assist in the tracing, recovering, and distributing of
missing or frozen assets. However, it is worth noting that while
the current ruling addresses explicitly the Fantom Foundation’s
losses, it sets an important precedent for all affected users to
pursue their claims against Multichain. Related Reading: Shiba Inu
Price Skyrockets 45%, Surges Past $0.000045: Here’s Why Ultimately,
the Foundation intends to use this legal victory to facilitate the
appointment of “suitably qualified” experts to recover and
distribute assets on behalf of all creditors. This milestone marks
a significant step forward in the ongoing legal saga and
underscores the team’s approach to righting the wrongs caused by
the exploit. Riding The Bull Market Despite the ongoing legal
battle faced by the protocol, its native token, FTM, has
experienced significant gains across all time frames, taking
advantage of the current bullish sentiment in the overall market.
In the year-to-date period, the FTM token has recorded a remarkable
increase of 67%, followed by gains of over 92% in the past thirty
days. Furthermore, in the past seven and fourteen days alone, the
token has seen gains of 50% and 57%, respectively. This continuous
upward trend propelled FTM to reach a 20-month high of $0.751 on
Monday. However, it has since retraced and is trading for $0.681,
with a modest recovery of 1.8% in the past few hours. Featured
image from Shutterstock, chart from TradingView.com
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