What happened?
The High Court of Singapore ordered the liquidation of Multichain Foundation Ltd. following a significant security breach in 2023 that resulted in user losses exceeding $210 million. The court’s decision on May 9, 2025, was prompted by a petition from Sonic Labs, previously known as the Fantom Foundation, which was impacted by the hack. KPMG Services Pte. Ltd. was appointed to manage the dissolution and asset recovery process for Multichain.
Who does this affect?
This ruling impacts the users and platforms affected by the security breach, particularly those who lost funds during the incident. Sonic Labs and other parties involved with the platform are directly affected, as they seek compensation for their losses. Additionally, the case highlights broader risks within the cryptocurrency industry for participants relying on decentralized protocols like Multichain.
Why does this matter?
This event is significant for the market as it underscores ongoing vulnerabilities and security challenges within the crypto sector, particularly for cross-chain protocols. The collapse of Multichain and similar incidents can erode investor confidence and lead to increased scrutiny and regulation. As instances of hacks rise, with staggering losses reported, players in the crypto ecosystem may face heightened pressure to enhance security measures and accountability.