Sonic Labs achieved the liquidation of Multichain for the recovery of funds after the hack of $210 million

The Singapore court approved the liquidation of Multichain Foundation following a lawsuit by Sonic Labs for damages from the hacking of the cross-chain protocol in 2023. A third of this amount belonged to Sonic Labs.

KPMG Singapore has been appointed as the joint liquidator. Sonic Labs filed a lawsuit back in March 2023 after Multichain ceased operations and stopped communicating with the affected projects.

The court supported Sonic Labs’ arguments regarding breach of contract and misleading actions by the developers of the cross-chain protocol. The proceedings dragged on as the Multichain team did not respond to inquiries. The platform’s CEO was arrested in China a few months before the hack.

Michael Kong, the head of Sonic Labs, stated that the company was forced to initiate the liquidation process in order to recover its own and others’ funds.

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

“If Multichain had not been hiding from the victims, this entire process would have been unnecessary, and we would have saved over a year,” he believes.

Kong added that the funds lost as a result of the incident should ultimately be returned to the users.

On May 12, hackers breached the interface of the DeFi platform Curve Finance and replaced the domain with a malicious IP address of a phishing site with a drainer that can drain wallets.