Fantom Foundation Wins $2.19 Million Against Multichain

In a recent legal win for the Fantom Foundation, Singapore’s High Court ordered Multichain Foundation Ltd. and Multichain Pte Ltd. to pay $2. 19 million in damages. 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. 

Damages breakdown

The court awarded Fantom Foundation an amount of $58,620.55 for the loss of the stablecoins including USDT, USDC, and DAI. A significant $2,129,250 was received for the 4.175 million in FTM tokens, according to the current market price. The valuation method also employed the token’s price on the date of valuation, 14th April 2023, and the mid-price obtained from Binance, which is the world’s largest digital currency trading platform.

Security breach impact

The setting of this case is a massive security incident on July 7, 2023, that resulted in the loss of more than 127 million US dollars, as well as material of the Fantom Foundation. By September 18, 2023, it was discovered that the breach diminished the value of the lost assets hence the court award was pegged on the new value.

Fantom Foundation’s statement

After the court ruling, the Fantom Foundation also came out to say how important the ruling was. Their litigation was to seek restitution of the lost capital and to commence a process of the company’s winding up which led to the appointment of a third-party liquidator. This liquidator, funded in part by the Fantom Foundation, will help to gather and return lost or frozen funds to all stakeholders.

Looking at the case as it proceeds to appoint a liquidator, the crypto community will be keenly waiting for justice to be served adequately.

Read Also: Joe Biden’s Veto on Crypto Rule Delays House Vote – What’s Next?