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Singapore Court Orders Multichain Liquidation After Major Exploit

16.05.2025 17:00 1 min. read Alexander Stefanov
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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.

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.

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.

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