Sonic Labs Recovers Portion of Funds Lost in November Exploit, Continues Broader Restitution Efforts

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Sonic Labs, the blockchain ecosystem formerly known as Fantom, said on January 14, 2026, that it has recovered part of the funds lost in a major security exploit that occurred in November, returning millions of tokens to affected users.

According to the announcement, the incident involved Beets, a decentralized exchange and liquid staking hub within the Sonic ecosystem. The exploit stemmed from a vulnerability originally identified in the Balancer protocol and resulted in losses totaling millions of dollars. Sonic Labs stated that it has since recovered 5,829,196 S tokens, which have already been redistributed to verified victims of the attack.

The company described the recovery as the result of extensive on-chain analysis and coordination with global exchanges, highlighting what it called a successful collaboration between its technical, forensic, and legal teams.

Multichain Litigation and Asset Liquidation

The Beets recovery forms part of a wider effort by Sonic Labs to address the impact of past security breaches, including the $210 million Multichain hack in 2023. That incident significantly affected the Sonic ecosystem and has been the subject of prolonged legal proceedings.

Following a ruling by the High Court of Singapore, Sonic Labs has obtained the authority to liquidate the remaining assets of the Multichain Foundation. The court decision cited the "persistent absence" of Multichain's leadership, enabling liquidators from KPMG Singapore to begin identifying and seizing assets. Sonic Labs estimates that roughly one-third of the total losses linked to the Multichain incident may be recoverable through this process.

By pursuing legal remedies alongside technical investigations, the company has framed the incidents as both security failures and contractual breaches, reflecting a broader approach to restitution within decentralized finance.

Security Upgrades and Network Changes

In parallel with recovery efforts, Sonic Labs has introduced new security measures as part of its transition to the Sonic Mainnet. These include the launch of the "Sonic Gateway," a decentralized bridge designed with a built-in fail-safe mechanism. Under this system, users can reclaim funds on the Ethereum mainnet if the bridge remains inactive for more than two weeks.

The company has also tightened auditing requirements for third-party decentralized applications operating in the ecosystem, aiming to reduce the risk of future exploits. These changes coincide with other network updates, including a planned 190.5 million S token airdrop and the gradual retirement of the legacy FTM upgrade portal.

The recovery of the Beets-related funds marks a notable development for Sonic Labs as it continues efforts to address past losses while implementing safeguards intended to prevent similar incidents in the future.