• Tue. Apr 16th, 2024

Multichain’s $250M Leakage Crisis

Avatar photo

ByMarcel Bich

Aug 13, 2023
Multichain's $250M Leakage Crisis
Marcel Bich
Latest posts by Marcel Bich (see all)

Money is rapidly leaking out of the Multichain protocol, resulting in a staggering loss approaching $250 million. Tokens worth hundreds of millions of dollars have been withdrawn via the Multichain internetwork router protocol, affecting several cryptocurrency projects.

Cryptocurrency Chaos: Massive Withdrawals and Security Concerns Shake Multichain Network

Over the past 12 hours, an additional $117 million has been withdrawn, impacting networks such as Arbitrum, Avalanche, Polygon, Optimism, and Fantom. The Beosin firm reports an additional $103 million withdrawal, involving significant sums of USDC, fUSDT, DAI, ETH, wrapped Bitcoin, and wrapped Ether.

Earlier, on July 7, a withdrawal of $126.3 million from Fantom’s network raised concerns of compromised security. The suspected attacker’s account held a substantial cryptocurrency sum, including tokens like USDC stablecoin, wrapped Bitcoin, wrapped Ether, DAI, Chainlink, Curve DAO, YFI, and Wootrade Network tokens.

Despite the illicit gains, the attacker has yet to move or sell the assets. Multichain has initiated an audit and urged users to revoke permissions associated with its smart contracts.

The Fantom Foundation is actively assessing the situation and will provide updates accordingly. LayerZero, previously supporting assets on Fantom, denies involvement in the transfers, suggesting that individuals may be moving assets for future return.

Multichain has a troubled history, experiencing technical issues in May and losing contact with its CEO amidst rumors of detention in China. The absence of the CEO further worsened the crisis, leading to the suspension of services for multiple blockchains.

The incident serves as a stark reminder of the ongoing security risks faced by the cryptocurrency ecosystem.

Avatar photo

Marcel Bich

Marcel ‘s passion for the world of cryptocurrencies and his comprehensive knowledge of blockchain technology make him an invaluable asset to our team. He stays updated on the latest trends, regulations, and emerging technologies in the crypto space, ensuring that our audience receives accurate and up-to-date information.