Can Fantom Users Recover Multichain Assets?
Published 6/16/2026, 7:53:59 AM
Short answer: Yes, but through official legal channels now — not Multichain's guidance. Since May 2025, Fantom users have an active official recovery pathway via court-appointed liquidators KPMG, though direct distributions remain years away.
What Happened
On July 6–7, 2023, Multichain suffered a catastrophic exploit resulting in $210+ million in total losses, with approximately $122 million drained specifically from the Fantom bridge — roughly one-third of all stolen funds. The root cause was a private key compromise of CEO Zhaojun He, who had sole control over Multichain's MPC keys despite claims of decentralized security. Zhaojun was detained by Chinese authorities in May 2023, months before the exploit occurred. [Source: https://blog.fantom.foundation/fantom-foundation-update-on-judgment-against-multichain/]
Affected Assets on Fantom:
| Asset | Approximate Value |
|---|---|
| USDC | $57–58 million |
| wBTC (1,020–1,023 coins) | ~$30.9 million |
| wETH (7,200+ coins) | ~$13.7 million |
| DAI | $4 million |
| FTM (4.175M from Fantom's LP) | ~$2.13 million |
Official Recovery Pathway (Now Active)
Fantom users now have an official recovery mechanism through court-supervised liquidation:
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January 30, 2024: Fantom Foundation (now Sonic Labs) obtained default judgment against Multichain Foundation in Singapore High Court for breach of contract and fraudulent misrepresentations. [Source: https://blog.fantom.foundation/fantom-foundation-update-on-judgment-against-multichain/]
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July 8, 2024: Court awarded Fantom Foundation $2,187,870.55 in damages.
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May 9, 2025: Singapore High Court granted Sonic Labs' winding-up application, appointing KPMG Singapore as official joint liquidators. [Source: https://drive.google.com/file/d/110MQaRR4N026uUHlCXe3d47eUpGYgiBx/view]
What This Means for Users:
- KPMG liquidators now have legal authority to trace, recover, and redistribute Multichain's assets
- All affected users can file claims through the liquidation process once claims procedures are announced
- ~$65 million in frozen USDC (held by Circle) and other assets are subject to recovery efforts
- Sonic Labs CEO Michael Kong stated: "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." [Source: https://x.com/michaelfkong/status/1922742429398204678]
Community Recovery Options (Without Waiting for Official Guidance)
| Option | Status | Details |
|---|---|---|
| KPMG Liquidation Claims | Active | File claims once liquidator announces procedures |
| Class Action Participation | Available | Fantom opened proposal for class action lawsuit |
| Trading Wrapped Tokens | Risky (~10% loss) | Multichain-wrapped assets trade at ~10% of true value |
| Self-help/Tracing | Limited | Frozen assets require legal process to recover |
Actionable Steps for Users
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Document Holdings Now: Record all Multichain-related transactions, wallet addresses, and amounts lost. This documentation will be critical for the claims process.
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Monitor Official Channels: Follow Sonic Labs (@soniclabs) and Fantom Foundation (@FantomFDN) for announcements about the KPMG claims process timeline. [Source: https://x.com/michaelfkong/status/1922742429398204678]
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Participate in Class Action: Fantom opened proposals for affected users to join a class action lawsuit — contact Fantom Foundation for details.
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Consider Legal Consultation: Given the multi-year timeline, independent legal action may be worth exploring, especially for larger losses.
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Revoke Multichain Approvals: Use revoke.cash or similar tools to cancel any lingering Multichain token approvals to prevent further exposure.
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Beware of Scams: Scammers actively impersonate Fantom Foundation with phishing schemes offering "emergency FTM distribution." Verify all recovery-related communications through official channels only.
Timeline Assessment
- Claims Process: Likely to open in coming months as KPMG establishes procedures
- Recovery Timeline: Community estimates suggest years before any distributions occur
- Recovery Probability: Uncertain but the liquidation framework provides the best available pathway
Key Sources
| Resource | Link |
|---|---|
| Singapore High Court Ruling | [2024] SGHC 173 |
| Official Court Order (May 2025) | Google Drive |
| Sonic Labs CEO Statement | @michaelfkong |
| Fantom Foundation Blog | blog.fantom.foundation |
Conclusion
Fantom users can recover Multichain assets — not through Multichain itself (which is defunct), but through the official KPMG liquidation process now underway in Singapore courts. Community-driven methods like trading wrapped tokens at steep discounts exist but carry significant risk. The most reliable path forward is documenting losses now and filing claims once KPMG announces procedures.
What remains open: The exact claims submission timeline, recovery percentage per user, and whether KPMG can successfully liquidate enough assets to cover user losses.