The Singapore High Court has ruled in favor of Sonic Labs, enabling the winding up of the Multichain Foundation due to the aftermath of a 2023 hack which led to substantial fund losses. In its judgment on May 9, Justice Kwek Mean Luck appointed KPMG as liquidators to oversee the bankruptcy proceedings aimed at recovering stolen assets. Sonic Labs, previously the Fantom Foundation, filed the lawsuit after encountering non-cooperation from former Multichain employees. CEO Michael Kong expressed the necessity for legal action, emphasizing the intent to recover funds for the victims. In July 2023, it was reported that the hack resulted in losses exceeding $210 million across multiple blockchain networks including Fantom, Ethereum, and Binance Smart Chain. Following the ruling, Sonic Labs aimed to utilize their legal victory to petition for the formal wind-up of Multichain and facilitate the claims of other affected parties. This legal action follows a breach of contract claim leading to the identification of a $122 million loss. Multichain had already faced operational difficulties, particularly after the departure of its CEO.

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