Multichain is currently investigating the situation and has advised all users to stop using its services temporarily.
On July 6, the multichain bridge experienced significantly high outflows, indicating a possible exploit of the platform involving millions of dollars. Shortly after, Multichain protocol announced the suspension of its operations.
According to reports, a substantial sum of $125 million worth of multi-chain assets held on the cross-chain protocol Multichain was transferred out to various wallets. The Fantom bridge encountered the most significant exploit, with approximately $122 million worth of assets, including wBTC, USDC, USDT, and other altcoins, being moved out.
Following the incident, the Multichain Protocol took to its official Twitter account to acknowledge the situation. It stated that the assets locked on the Multichain MPC address were transferred to an unknown address in an unusual manner.
The team expressed uncertainty about the exact cause and assured users that they are currently investigating the matter. In the meantime, all users are advised to temporarily halt the use of Multichain services and revoke any contract approvals associated with Multichain.
Multichain has been encountering challenges for over a month, primarily due to technical issues and the absence of its CEO. Recently, there were three unexplained outflows from Multichain’s Fantom, Moonriver, and Dogecoin bridge contracts, which raised concerns and led to fears of a potential hack within the crypto community on Twitter.
MultiChain Bridge Faces Attack:
According to crypto analyst Colin Wu, users have been utilizing DLN Trade to exchange assets on the Fantom chain for assets on other chains at lower rates. Recent transactions indicate that Fantom 1 USDC can be converted into BSC 0.9 USDC, Polygon 0.88 USDT, and similar exchanges, offering approximately a 10% discount.
One day earlier, Binance, a cryptocurrency exchange, temporarily halted deposits and withdrawals for eight altcoins associated with the Multichain protocol. Binance also made an announcement stating that it would no longer support certain altcoin projects, such as Alchemy Pay (ACH) on the BNB Smart Chain, Spell Token (SPELL) on the Avalanche C-Chain, and six other projects with smaller market capitalization on Ethereum and Fantom.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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