Later proven to be a hack, the Chinese cross-chain protocol Multichain Foundation observed shockingly high outflows in July 2023. Many protocols connected to the chain therefore became victims of the attack, resulting in the loss of about $210 million in assets spanning several chains, including Fantom, Ethereum, BND, Cronos, Polygon, Arbitrum, zkSync, Optimism, and Moonbeam.

After declaring its financial losses to the Singapore High Court, Fantom Foundation sought reimbursement for the damages endured.

While Multichain’s officials missed the recent court hearing on June 3, Fantom’s representatives submitted evidence gathered over the year to the Singapore court.

“The Claimant’s position is that the CEO of the First Defendant had ultimate privileges and control over the cryptocurrency assets stored in the Multichain Bridge,” says the statement.

Multichain admitted this claim on X and violated the user agreement as well, the court said.

The court decided on July 8 to award Fantom $2.187 million for losses experienced during the hack. Fantom earlier claimed, though, that the losses in her ecosystem accounted for about one-third of all losses totaling $210 million.

Research on blockchain security company Immunefi shows that crypto losses from hacks and scams more than doubled in the second quarter of 2024 compared to the same period the previous year.

Comparatively to just $220 million in Q2 2023, hacks cost over $572 million in Q2. Most of the losses in the quarter came from centralized exchange hacking.

Hacker and scam losses had been dropping before the second quarter; Immunefi notes a 23% drop in Q1. This drop persisted through April and most of May, then peaked at the end of June.

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