Sonic Labs has successfully petitioned the Singapore High Court to wind up the Multichain Foundation, marking a key step toward recovering funds lost in a major 2023 hack.
Background
- On May 9, 2025, the Singapore Supreme Court ruled in favor of Sonic Labs (formerly the Fantom Foundation) in its bid to dissolve the Multichain Foundation, appointing KPMG as liquidators.
- The decision follows months of legal wrangling after Multichain suffered a massive hack in July 2023, which led to the loss of at least $210 million in assets across several blockchain ecosystems including Ethereum, Fantom, BNB Chain, Cronos, and Polygon.
- Multichain’s operations came to a halt in July 2024 after its CEO, known publicly as Zhaojun, was reportedly detained by Chinese authorities, leaving the project with no access to operational funds and leadership.
Why Should You Pay Attention?
- The court's approval of the wind-up application paves the way for asset recovery efforts on behalf of both Sonic Labs and other affected users.
- The appointment of liquidators from KPMG could lead to transparency and a legal path toward the restitution of stolen or frozen assets.
- The ruling signals a maturing legal framework for addressing cross-chain hacks and insolvency in the decentralized finance sector, especially through formal court processes.
Who Said What?
- Michael Kong, CEO of Sonic Labs, stated:
“Since Multichain and its former employees have been completely uncooperative, we were compelled to file a lawsuit and forcibly wind up the company… this entire process would've been unnecessary if they hadn’t hidden from victims.”
- Kong added that the legal victory “will now allow liquidators to begin working with other parties to start recovering funds that may eventually be returned to users.”
- The court’s decision comes after a default judgment was granted in January 2024 in Sonic Labs' favor, citing breach of contract and fraudulent misrepresentation claims totaling $122 million.
Zooming Out
- The Multichain incident ranks among the largest DeFi hacks in recent history, with ripple effects across major blockchain networks.
- Sonic Labs' proactive legal approach may set a precedent for other projects and victims to pursue cross-jurisdictional remedies in the wake of protocol failures or cyberattacks.
