{"id":129287,"date":"2025-05-15T07:15:32","date_gmt":"2025-05-15T07:15:32","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129287"},"modified":"2025-05-15T07:15:32","modified_gmt":"2025-05-15T07:15:32","slug":"sonic-labs-wins-judgment-for-multichain-foundation-to-wind-up","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129287","title":{"rendered":"Sonic Labs wins judgment for Multichain Foundation to wind up"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsA Singapore High Court has ruled in favor of Sonic Labs\u2019 motion to force the Multichain Foundation to wind up in an effort to recover funds stolen during a 2023 hack.<br \/>\nIn the May 9 judgment in the Singapore Supreme Court, Justice Kwek Mean Luck granted a request from Sonic Labs, formerly the Fantom Foundation, to declare Multichain bankrupt and appoint liquidators from global audit, tax and advisory service KPMG.<br \/>\nSonic Labs CEO Michael Kong said in a May 14 statement to X that the team behind the layer 1 Sonic blockchain felt it had no choice but to file a lawsuit to forcibly wind up Multichain because its former employees were being \u201ccompletely uncooperative\u201d and \u201chid from victims.\u201d<br \/>\n\u201cGoing forward, the liquidators can now start working with other parties to initiate the process of trying to acquire funds that should eventually be returned to users if those legal proceedings are successful,\u201d Kong said.<br \/>\nSource: Michael KongIn July 2023, the Multichain Foundation experienced abnormally large outflows, later confirmed as a hack, leading to the loss of assets across multiple chains, including Fantom, Ethereum, BNB, Cronos and Polygon.<br \/>\nBlockchain security firm Beosin and Fantom estimated in an August 2023 report that the total losses for all chains were at least $210 million.<br \/>\nWind up action followed legal win\u00a0<br \/>\nThe High Court of Singapore granted a default judgment ruling in January 2024 as part of Sonic Labs\u2019 legal action against Multichain for breach of contract, fraudulent misrepresentations and claims the crosschain protocol had lost $122 million of its funds.<br \/>\nRelated: Multichain\u2019s \u2018mysterious withdrawals\u2019 have whiffs of a \u2018rug pull\u2019 \u2014 Chainalysis<br \/>\nFollowing the ruling, Sonic Labs said in March 2024 it would leverage the legal win to petition the court to wind up the Multichain Foundation and appoint a liquidator, equivalent to a Chapter 7 bankruptcy in the US, to help recover and distribute missing or frozen assets.<br \/>\nPreviously, Sonic Labs indicated it planned to use the legal win to forge a path for other victims of the Multichain hack to lodge claims for their losses as well.<br \/>\nMultichain shut down in July 2024 due to a lack of operational funds, and after its CEO, known as Zhaojun, was detained by Chinese police.<br \/>\nMagazine: Bitcoin eyes \u2018crazy numbers,\u2019 JD Vance set for Bitcoin talk: Hodler\u2019s Digest, May 4 \u2013 10<a href=\"https:\/\/cointelegraph.com\/news\/sonic-labs-wins-judgment-multichain-foundation-to-wind-up?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsA Singapore High Court has ruled in favor of Sonic Labs\u2019 motion to force the Multichain Foundation to wind up in an effort to recover funds stolen during&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129287"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129287"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129287\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129287"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}