- Fantom Foundation said that on January 30 the Singapore High Court ruled in favor of the blockchain platform.
- Fantom won its lawsuit against the Multichain Foundation, meaning that a court-mandated authority will help recover $65 million in assets.
- FTM price gained nearly 3% on the day, after hitting a new 2024 high of $0.75 on Monday.
Fantom (FTM) blockchain protocol announced a legal victory against Multichain Foundation, on the grounds of breach of contract and fraudulent misrepresentation. The High Court of Singapore granted a default judgment ruling in the Foundation’s favor.
In its official X account (formerly Twitter), Fantom informed users that while the Foundation has secured the means to recover its own losses, it aims to use the legal victory to pave a path for users to lodge their complaints against Multichain and attempt to recover their frozen stablecoins.
Also read: Fantom cuts staking requirement by 90% in a bid to increase security
Fantom Foundation aims to recoup $65 million
Fantom Foundation said that its management and legal team has succeeded in paving the way to recover the assets lost during July’s 2023 Multichain exploit.
After spending months attempting to engage with former directors and key personnel of the Multichain Foundation, FTM fought to recover its frozen stablecoins.
Following the legal victory, the Singapore Court is set to quantify the damages suffered by FTM and issue a demand for the Multichain Foundation to pay the sum.
If the Multichain Foundation fails to comply, the court will appoint a liquidator to claw back and recover assets for Fantom, including a total of $65 million in stablecoins.
The Foundation advised FTM users to lodge their own complaints against the firm to recover their funds.
Since the July 2023 Multichain exploit, Fantom Foundation’s management and legal team have been working tirelessly across multiple jurisdictions to chart a path forward that enables victims to partially recover assets lost. We have an important update in this regard.
— Fantom Foundation (@FantomFDN) March 4, 2024
After all… pic.twitter.com/pUxyalPdMD
FTM price rallies in response to court win
The development in Fantom’s lawsuit against Multichain was key to FTM holders as the Foundation attained a legal victory and cleared a path to recover frozen stablecoins from the Multichain exploit.
FTM price hit a new 2024 peak at $0.75 on Monday, before pulling back to $0.66. From a technical perspective, FTM price is on track to rally higher, with both the Moving Average Convergence/Divergence (MACD) indicator and the Awesome Oscillator (AO) supporting the asset’s gains and signaling that the uptrend is intact.
FTM/USDT 1-day chart
Still, a daily candlestick close below $0.60 could invalidate the bullish thesis for Fantom price. In case of price declines, FTM price could find support at $0.56 and $0.54, two levels that have acted as resistance for FTM throughout 2024.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.