Fantom Foundation releases official statement regarding Multichain Incident

The Fantom Foundation used its official X account to release a detailed statement on the “Multichain Incident,” outlining its legal strategy and next steps following major losses from the July 2023 Multichain bridge exploit. The exploit drained more than $210 million in assets across multiple chains, with roughly one‑third of the losses borne by Fantom’s ecosystem, after which Multichain effectively ceased functioning and its leadership became unreachable. Fantom had previously endorsed Multichain as the primary bridge for its Layer 1 network, which left many Fantom users and DeFi protocols directly exposed when the bridge failed. In its statement, Fantom explained that it had pursued legal action in Singapore, where Multichain is based, on grounds including breach of contract and fraudulent misrepresentation. This process led to a default judgment in Fantom’s favor on 30 January 2024 and, after a June 2024 damages hearing, a High Court ruling ordering Multichain to pay approximately US$2.19 million in compensation. The foundation emphasized that its broader goal is not only to recover its own losses but also to force the winding up of the Multichain Foundation and secure the appointment of an independent liquidator to trace, recover, and distribute frozen or missing assets—such as around US$65 million in stablecoins still held under Multichain—on behalf of all affected users. This marks one of the clearest examples to date of a Layer 1 foundation using traditional courts to address losses from a cross‑chain bridge exploit, with implications for how legal responsibility and decentralization claims are evaluated in future Web3 infrastructure failures.

✨ AI-generated background, compiled from web sources — not editorial content.

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