Singapore Court Orders Multichain to Pay $2.19 Million to Fantom

Bittime - The Singapore High Court has ordered the Multichain Foundation to pay compensation to the Fantom Foundation. This decision is the result of a loss assessment hearing held following the default judgment against Multichain on January 30, 2024.  

Multichain Violates Contract

On 30 January 2024, Multichain was found to be in breach of contract by the Singapore High Court. A loss assessment hearing was then held on June 3, 2024, where evidence was presented by Eli Bernstein, general counsel of the Fantom Foundation, and Miao Gu, a valuation expert from specialist firm Secretariat International. However, representatives of the defendant, Multichain, were not present at the trial.

Singapore Court Decision

In his decision, Judicial Commissioner Mohamed Faizal stated that Multichain had to pay Fantom USD 2,187,870.55 for the losses suffered. Apart from that, the Judicial Commissioner also stated that the violation occurred because the Multichain CEO had full control over the crypto assets stored in Multichain Bridge. 

This is contrary to the main provisions of the User Agreement, which states that Multichain The bridge is controlled by decentralized and secure MPC nodes, which does not allow control by a single person.

Phantom Will Multichain Liquidation

The goal of the litigation carried out by the Fantom Foundation is to force Multichain to be liquidated through the courts and appoint a third-party liquidator who will help recover and distribute lost or frozen assets. 

The Fantom Foundation will partially fund these liquidators and provide all of their knowledge and investigative materials to support the recovery efforts.

The Fantom Foundation will continue to pursue the case until a liquidator is appointed, which is expected to occur in the coming months. Once appointed, the liquidator will carry out an independent assessment of the assets, followed by a claim, recovery and distribution process.

Statement from the Fantom Legal Team

Nicolas Tang of Farallon Law, who along with Ashviniy Narenthiren represented the Fantom Foundation in the case, expressed satisfaction with the High Court's decision. 

He said that this decision is a big win not only for their clients, but also for the entire crypto community. This decision strengthens the legitimacy and legal standing of digital assets, ensuring a fair and just environment for innovation and growth in this fast-growing sector.

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