Multichain has reportedly halted its network on a suspected $130 million hack, a move that has come just a month after the initiative’s CEO disappeared.
The Multichain service stopped currently, and all bridge transactions will be stuck on the source chains.
There is no confirmed resume time.
Please don’t use the Multichain bridging service now.
— Multichain (Previously Anyswap) (@MultichainOrg) July 7, 2023
Multichain tokens are crypto-assets that can be used on several blockchain/DLT networks.
They are used to transfer value and other assets across several different blockchains without requiring intermediaries to finalize the transactions. Cross-blockchain cryptocurrencies are built on the notion of interoperability across multiple DLT networks.
As widely reported, Multichain has requested clients to stop using the platform’s bridges following the alleged exploit that has impacted its Dogechain, Fantom, and Moonriver services
Multichain confirmed that it has suspended its services after detecting a suspicuous movement of a relatively large number of crypto tokens from its bridging networks to an unknown digital currency address.
Blockchain analysts have raised the possibility of a massive exploit after realizing that crypto was being extracted from Multichain’s decentralized computation network.
Multichain noted via social media that the team is not sure about exactly what happened and is “currently investigating” the issue. They added that ii now “recommended that all users suspend the use of Multichain services and revoke all contract approvals related to Multichain.”
Multichain, previously known as Anyswap, is supposed to enable clients to bridge their digital assets between different blockchain/DLT platforms.
The developers behind the initiative stated that all bridge transactions will stay suspended on their originating blockchains. And no fixed timeline is given for when services may resume .
Earlier yesterday, blockchain firm PeckShield had cautioned Multichain regarding suspicious activity on its Fantom (FTM) bridge, indicating crypto token outflows of around $102 million.
The alleged exploit/security breach impacted digital tokens that reportedly include wrapped bitcoin (WBTC), stablecoins DAI and USDC, and Ethereum (ETH). Other tokens include Chainlink (LINK).
It is now being said that the transfers have resulted in over $130 million in potential losses.
It’s worth noting that Multichain’s activities had been criticized during the last month because of problems with its tech stack, which was allegedly not operating like it should have been.
At the time of writing, there is around $1.26 billion in total value locked (TVL) with Multichain, according to available data provided by DeFiLlama.
Following these developments, digital asset exchange Binance halted several crypto token deposits from Multichain on multiple instances. This move came after a number of days of suspended/delayed transfers.
As widely reported, the Multichain CEO has been missing for over a month.
Industry insiders are now speculating that a few of the team members could actually have been taken into custody by China’s law enforcement agencies.
In May of this year, the team claimed that it had been unable to contact Chief Executive Officer Zhaojun so they could acquire the server access for “maintenance,” suggesting that the CEO was the only individual with the appropriate permissions to address its issue at that particular time. So much for “decentralization.”