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Elena R
Elena R
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Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- Jul 11, 2024 09:55 UTC
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Fantom Foundation Wins $2.19 Million Judgment Against Multichain
The Singapore High Court ruled that Multichain must pay $2.19 million to Fantom Foundation for failing to deliver FTM tokens.
The court determined the damage amount for both stablecoins and FTM tokens based on market value.
Fantom Foundation plans to use the court award and a liquidator to recover lost funds for all stakeholders.
In a major victory for the Fantom Foundation, the Singapore High Court just delivered a knockout blow to Multichain. The court ordered Multichain to pay a hefty $2.19 million in damages for failing to deliver millions of Fantom tokens. This decision has been reached because Multichain has not supplied 4. 175 million FTM tokens or equivalent market value, which is not an easy fixture for cryptocurrency-related lawsuits.
This case mainly involved Multichain’s failure in delivering 4. 175 million Fantom (FTM) tokens. The detailed assessment of damages was done and was presided over by Honourable Judicial Commissioner Mohamed Faizal.
Court Award Details
The court granted Fantom Foundation $58,620.55 for losses incurred from stablecoins, including USDT, USDC, and DAI. Additionally, a substantial $2,129,250 was awarded for the missing FTM tokens, based on their market value as of April 14, 2023. The valuation incorporated the token’s price on that date and the mid-price from Binance, the world’s leading digital currency trading platform.
Background of the Incident
The legal case emerged from a significant security breach on July 7, 2023, which led to the loss of over $127 million in assets belonging to the Fantom Foundation. By September 18, 2023, it was evident that the breach had impacted the value of the lost assets, prompting the court to adjust the award accordingly.
Following the court’s decision, the Fantom Foundation emphasized the importance of the ruling. Their litigation aimed to recover the lost capital and initiate the winding-up process for the company, leading to the appointment of a third-party liquidator. Partially funded by the Fantom Foundation, this liquidator will work to recover and return the lost or frozen funds to all affected stakeholders.
As the case progresses and the liquidator is appointed, the crypto community will be closely monitoring to ensure that justice is served effectively.
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