Sonic Labs Secures Liquidation of Multichain to Recover Funds After $210 Million Hack

A Singapore court has approved the liquidation of Multichain Foundation following a lawsuit by Sonic Labs to recover damages from a cross-chain protocol hack in 2023. One-third of the stolen amount belonged to Sonic Labs.

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

The court upheld Sonic Labs’ claims of contract breach and misleading conduct by the cross-chain protocol developers. The proceedings were prolonged as the Multichain team failed to respond to inquiries. The platform’s CEO was arrested in China several months before the hack.

Michael Kong, head of Sonic Labs, stated that the company was compelled to initiate the liquidation process 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 hidden 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 in the incident should ultimately be returned to users.

Earlier, on May 12, attackers hacked the interface of the DeFi platform Curve Finance and replaced the domain with a malicious IP address of a phishing site with a drainer capable of emptying wallets.