Multichain Suspends Services Following $130M Exploit across Multiple Bridges

Multichain has now warned that due to the exploit, it will suspend all transactions in the source chains until further notice.

The open source Multichain Router (MULTI) protocol has confirmed an exploit in its protocol affecting $130 million worth of tokens. The protocol required its users to suspend all related transactions for the time being.

at recent days tweet, Multichain said that although it is currently investigating the anomaly, it is not sure what exactly happened. Then the tweet warned:

“It is recommended that all users suspend use of the Multichain Services and revoke all contract approvals related to Multichain.”

In a subsequent tweet, Multichain said that all services have been stopped, and “all bridge transactions will be suspended in the source chains.” The protocol added that there was no “appeal time” to restore the chain or to complete its exploitation in the investigation. According to data from CoinMarketCap, MULTI has lost 15% in the past 24 hours and more than 23% in the past seven days.

Binance CEO Changepeng Zhao responded to Multichain’s announcement in a tweet. Zhao assured users that the Multichain exploit had no impact on Binance:

“Looks like another hack happened on Multichain. This doesn’t affect Binance users or Binance itself. We replaced all assets and closed deposits a while ago. Regardless, we offer our assistance in helping out in this situation.”

MetaSleuth, a cryptographic visualization and analysis tool by BlockSec, has provided more details. According to MetaSleuth, more than $120 million worth of assets have been transferred from Multichain: Moonriver Bridge and Multichain: Fantom Bridge. MetaSleuth added that the funds were distributed to 6 different addresses. The BlockSec tool also reported that the players behind the exploit have burned 1.2 million ICEs, worth $1.8 million, from address “0x9d57.”

Binance has suspended the multi-chain bridge tokens prior to the exploit

On Wednesday, July 7, Binance said that it will suspend support for withdrawals and deposits for several multi-currency tokens, starting today. The delisting follows an earlier comment caused by delays in the Multichain protocol. In May, Binance suspended the tokens as transactions were delayed, and Multichain did not provide much information.

Following the recent suspension announcement, blockchain intelligence firm Arkham Intelligence confirmed that around $3 million in MULTI tokens moved to Gate.io, resulting in a 26.5% crash in the price of MULTI.

Multichain has had some issues for a while now, including the alleged disappearance of its CEO. In May, the protocol hanging Cross paths of several series, a problem caused by “unforeseen circumstances”. The tweet explained that fixing the issue was beyond existing permissions, the ability of team members, and the required input from the CEO. However, Multichain stated that it did not have access to CEO Zhaojun to obtain the required permissions. The issue affected 11 chains, including Dyno Chain, PublicMint, Findora, and ONUS.

Several news reports said that Chinese law enforcement was Arrested A few members of the Multichain team, including CEO Zhaojun. Rumors also indicated that the authorities had seized a wallet containing tokens worth more than $1.6 billion. According to Defi Llama, Multichain has $1,262 billion in Total Value Locked (TVL) as of press time.

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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify cryptocurrency stories down to the bare essentials so that anyone anywhere can understand without much background knowledge. When not deep into cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.

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