In a significant development for the crypto space, Singapore’s High Court has officially ordered the winding up of the Multichain Foundation, following a motion filed by Sonic Labs — the company formerly known as the Fantom Foundation. The move marks a major step in the ongoing effort to recover funds lost during a high-profile hack in 2023 that rattled multiple blockchain ecosystems.
The court ruling, handed down on May 9 by Justice Kwek Mean Luck, approved Sonic Labs’ request to place Multichain into compulsory liquidation. As part of the judgment, KPMG — a global leader in audit and advisory services — has been appointed as the official liquidator to manage the bankruptcy process and work toward asset recovery.
Michael Kong, CEO of Sonic Labs, addressed the ruling in a public statement on May 14 via X (formerly Twitter). According to Kong, Sonic Labs felt compelled to take legal action after months of frustrating attempts to engage with the Multichain team, who he says had gone completely silent and were unwilling to cooperate with affected parties.
“We were left with no other choice,” Kong explained. “Multichain’s former employees refused to communicate and actively concealed themselves from victims of the attack. Now, with court-appointed liquidators, there’s finally a path to begin recovering assets and returning them to users — assuming the legal process goes our way.”
The saga dates back to July 2023, when Multichain suffered a devastating breach. The protocol, which enabled cross-chain token transfers, suddenly experienced massive outflows. Initially shrouded in mystery, the incident was eventually confirmed to be the result of a hack that compromised funds across several major blockchain networks — including Ethereum, Fantom, BNB Chain, Polygon, and Cronos.
According to an investigation published in August 2023 by blockchain security firm Beosin and the Fantom Foundation, the hack resulted in losses of at least $210 million. Sonic Labs itself claims that $122 million of its own funds were among those lost.
In January 2024, Sonic Labs won a default judgment in its lawsuit against Multichain for breach of contract and fraudulent misrepresentation. This legal victory laid the foundation for its subsequent request to wind up the foundation — a move comparable to initiating Chapter 7 bankruptcy proceedings in the U.S.
Following the court win, Sonic Labs announced in March 2024 that it would push forward with liquidation efforts not only to recover its own losses but also to pave the way for other affected users to file claims. The company has consistently emphasized that it wants to help facilitate restitution for all victims of the incident.
Multichain’s troubles didn’t end with the hack. In July 2024, the project officially ceased operations, citing an inability to access necessary funds. The situation was further complicated when the company’s CEO, known only as Zhaojun, was detained by Chinese authorities — adding an additional layer of uncertainty to the already chaotic fallout.
For now, Sonic Labs and its legal team are placing their hopes in the liquidation process. The appointment of KPMG as liquidator is seen as a pivotal step, offering a structured and transparent framework to trace and potentially reclaim lost assets.
As the crypto space watches closely, this case may become a legal blueprint for how blockchain-related entities can pursue justice and restitution following catastrophic failures or breaches of trust.
