Sonic Labs, formerly known as the Fantom Foundation, has secured a legal victory in Singapore’s High Court. The court has approved Sonic Labs’ petition to wind up the Multichain Foundation, appointing KPMG as liquidators to oversee the process.
In a May 9 ruling in Singapore’s Supreme Court, Justice Kwek Mean Luck granted Sonic Labs, formerly the Fantom Foundation, a request to declare Multichain bankrupt and appoint liquidators from the global audit, tax, and consulting firm KPMG.
I'm pleased to announce that on 9 May, 2025, Fantom Foundation's (now @SonicLabs) winding up application against Multichain Foundation Ltd by the Singapore High Court was granted in full.
Individuals from KPMG Singapore were also appointed as liquidators on the same day.…
— Kong.sonic (@michaelfkong) May 14, 2025
This action stems from a July 2023 exploit where Multichain’s bridge protocol suffered a breach, leading to the loss of over $210 million across multiple chains, including Fantom, Ethereum, and Polygon. Fantom alone reported losses amounting to approximately $122 million.
Following unsuccessful attempts to engage with Multichain’s leadership, Sonic Labs pursued legal action, resulting in a default judgment in January 2024. The court decided Multichain guilty of false misrepresentation and breach of contract.
With the appointment of KPMG as liquidators, efforts will focus on tracing and recovering the lost assets. Sonic Labs aims to facilitate the return of funds to affected users, marking a step towards restoring trust in cross-chain protocols.
This case underscores the importance of robust security measures and accountability within the blockchain ecosystem. As the liquidation process progresses, the community keeps a careful eye on it, hoping for the recovery of lost assets and the strengthening of faith in decentralized finance platforms.
