Sonic Labs CEO Michael Kong said in a May 14 statement to X that the team behind the layer 1 Sonic blockchain felt it had no choice but to file a lawsuit to forcibly wind up Multichain because its former employees were being “completely uncooperative” and “hid from victims.”“Going forward, the liquidators can now start working with other parties to initiate the process of trying to acquire funds that should eventually be returned to users if those legal proceedings are successful,” Kong said.
Wind up action followed legal win The High Court of Singapore granted a default judgment ruling in January 2024 as part of Sonic Labs’ legal action against Multichain for breach of contract and fraudulent misrepresentations after Fantom claimed the crosschain protocol had lost $122 million of its funds.
Related: Multichain’s ‘mysterious withdrawals’ have whiffs of a ‘rug pull’ — ChainalysisFollowing the ruling, Sonic Labs said in March 2024 it would leverage the legal win to petition the court to wind up the Multichain Foundation and appoint a liquidator, equivalent to a Chapter 7 bankruptcy in the US, to help recover and distribute missing or frozen assets.
or
Share This Story
Article Details
Author / Journalist: Cointelegraph by Stephen Katte
The story "Sonic Labs wins judgment for Multichain Foundation to wind up" has 391 words across 11 sentences, which will take approximately 2 - 4 minutes for the average person to read.
Which news outlet covered this story?
The story "Sonic Labs wins judgment for Multichain Foundation to wind up" was covered 15 hours ago by Coin Telegraph, a news publisher based in United States.
How trustworthy is 'Coin Telegraph' news outlet?
Coin Telegraph is a fully independent (privately-owned) news outlet established in 2013 that covers mostly crypto news.
The outlet is headquartered in United States and publishes an average of 34 news stories per day.
It's most recent story was published 7 hours ago.
What do people currently think of this news story?
The sentiment for this story is currently Negative, indicating that people regard this as "bad news".
How do I report this news for inaccuracy?
You can report an inaccurate news publication to us via our contact page. Please also include the news #ID number and the URL to this story.
