According to an announcement, Binance will no longer allow tokens associated with the affected Multichain to be used on its platform as of July 7.
Binance has announced that it will stop supporting withdrawals and deposits for eight multi-currency tokens, starting Friday. Cryptocurrency exchange He said The suspension will continue until further notice.
The latest downtime follows a previous suspension of affected tokens due to an issue with the Multichain (MULTI) protocol. On May 25th, Binance previously suspended these tokens because multichain transactions were halting. Many transactions stalled, leaving users to wonder without a word as to the protocol.
The affected tokens are Harvest Finance (FARM) via BSC, Travala (AVA) via ETH, Alchemy Pay (ACH) via BSC, and Polkastarter (POLS) via BSC. Others are SuperVerse (SUPER) via BSC, Alpaca Finance (ALPACA) via Fantom, Beefy. Finance (BIFI) via Fantom, and Spell Token (SPELL) via Avalanche C-Chain.
in tweet On May 24, Multichain revealed: “Some cross routes are unavailable due to force majeure, and the service resumption time is unknown.” Multichain also said in a tweet that it will automatically add pending transactions, compensating all affected users.
Market reactions to the multi-chain problem
At that time, A.J a report He mentioned that Binance was not the only cryptocurrency company interacting with Multichain. Blockchain analysis service Lookonchain reported MULTI outflows of $3 million. Additionally, the Fantom Foundation’s wallet address removed $2.4 million (449,740) in liquidity on SushiSwap.
As confirmed by the intelligence company Arkham Intelligence in a tweet Those wallets transferred nearly $3 million in MULTI tokens to crypto exchange Gate.io. This move scared off investors and caused the price of MULTI to drop by 26.5% within 24 hours. The Arkham Intelligence tweet also mentioned a rumor that authorities in Shanghai have arrested the Multichain team.
The Binance announcement states that all of the mentioned tokens are still available via other networks supported by the exchange. According to CoinGecko data, MULTI is trading at $3.13 after losing 6.1% in 24 hours and 7.4% in the past week. The 24-hour high on MULTI is $3.34, with the 7-day high at $3.53.
Binance Multichain Suspended Potential Move To Protect Funds And Avoid Regulatory Attention
The world’s largest cryptocurrency exchange by volume, Binance is facing a lot of regulatory pressure and will likely act cautiously with Multichain to avoid further trouble. In May, Binance announced that it would suspend access to certain privacy coins in select European countries to comply with EU regulations. Binance named XVG, DASH, NAV, MOB and many more, announcing that they will not be available in Spain, Poland, Italy and France. However, the exchange chose not to delist these tokens by reclassifying its valuation of privacy coins.
Away from the European Union, Binance still has problems in Australia. In February, the Australian Securities and Investments Commission (ASIC) launched an investigation into the exchange over the wrongful closure of certain accounts. In April, the exchange asked Australian ASIC to revoke the derivatives license granted through a local subsidiary. The cancellation means that Binance must close all existing derivatives positions by April 21st. As of yesterday, ASIC raided Binance’s Australian office, according to a Bloomberg report.
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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 he’s not deep into cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.
