The Singapore High Court has approved Sonic Labs’ request to wind up the Multichain Foundation, marking a major legal step toward recovering funds lost in a massive 2023 cross-chain protocol hack.
Sonic Labs CEO Michael Kong explained in a May 14 statement on X that the legal action was necessary due to Multichain’s refusal to cooperate, stating that former team members “hid from victims” and remained “completely uncooperative.” Kong hoped the liquidation process would pave the way for recovering lost assets and compensating affected users.
I’m pleased to announce that on 9 May, 2025, Fantom Foundation’s (now @SonicLabs) winding up application against Multichain Foundation Ltd by the Singapore High Court was granted in full.
Individuals from KPMG Singapore were also appointed as liquidators on the same day.…
— Kong.sonic (@michaelfkong) May 14, 2025
In a judgment delivered on May 9, Justice Kwek Mean Luck ruled in favour of Sonic Labs—formerly known as the Fantom Foundation—granting the firm’s application to declare Multichain bankrupt and appoint KPMG as official liquidators.
Multichain suffered a severe security breach in July 2023, which led to huge outflows across several blockchains, including Fantom, Ethereum, BNB Chain, Cronos, and Polygon. An investigation by blockchain security firm Beosin and Sonic Labs estimated combined losses at over $210 million, with Sonic alone reportedly losing $122 million.
In January 2024, the Singapore High Court issued a default judgment against Multichain for breach of contract and fraudulent misrepresentation. That legal victory allowed Sonic Labs to file a petition in March to dissolve the foundation and seek asset recovery through court-appointed liquidation, akin to a Chapter 7 bankruptcy in the United States.
Multichain officially shut down operations in July 2024 following the detention of its CEO, known publicly as Zhaojun, by Chinese authorities and amid a depletion of funds. Sonic Labs also stated that its legal victory could set a precedent for other Multichain victims to file claims and recover their stolen assets through coordinated legal efforts.
Meanwhile, HTX Research recently launched Sonic, a new blockchain infrastructure designed to tackle the scalability challenges that have historically slowed DeFi platforms. The announcement coincides with the release of a detailed report, “Sonic: A Model for the New DeFi Paradigm,” which positions Sonic as a potential catalyst for the next wave of DeFi growth.
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