Singapore Court Orders Multichain Liquidation After Major Exploit

Sonic Labs has secured legal approval to dissolve Multichain Foundation, marking a major step toward recovering funds lost during the platform’s collapse in 2023.

A Singapore High Court ruling dated May 9 authorized Sonic’s request to wind up the now-defunct cross-chain protocol. KPMG Singapore will oversee the liquidation process, with the goal of reclaiming a portion of the $210 million drained from Multichain in a July 2023 exploit.

Sonic Labs, which rebranded from Fantom Foundation, suffered significant losses—roughly a third of the total.

The court’s decision follows a prior ruling that found Multichain liable for contract breaches and fraudulent misrepresentation tied to the exploit.

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Sonic Labs had repeatedly attempted to contact the foundation’s leadership, but Multichain’s key personnel, including CEO Zhaojun He, have been unreachable since his arrest by Chinese authorities last year.

In a public statement, Sonic CEO Michael Kong said the liquidation was a last resort, made necessary by Multichain’s refusal to cooperate. “This process could’ve been avoided if Multichain had been transparent with victims,” Kong stated on X.

The liquidation may pave the way for other affected users to reclaim stolen assets. Sonic Labs previously indicated that the legal case was intended not only to recover its own funds but also to establish a precedent for broader restitution.