- $127 million worth of assets including USDC, WBTC, WETH, DAI, UNIDX, LINK, USDT, WOO, ICE, CRV, YFI, and TUSD were moved from Multichain to multiple wallets.
- Multichain has suspended its asset bridge and advises users to revoke contract approvals.
- Fantom Foundation acknowledges the situation and is evaluating the circumstances; users are trading Fantom assets at a discount.
In a startling development, $127 million in locked assets were moved from the Multichain protocol to various wallets. The assets involved include USDC, WBTC, WETH, DAI, UNIDX, LINK, USDT, WOO, ICE, CRV, YFI, and TUSD. This unexpected outflow has raised eyebrows in the crypto community and led to the suspension of Multichain’s asset bridge.
Multichain released an official statement advising users to suspend usage of their services and to revoke contract approvals related to Multichain. This comes after the assets moved in large quantities, causing concern over the security and trustworthiness of the Multichain protocol.
Fantom Foundation has acknowledged the situation via tweets and expressed that they are actively evaluating the circumstances. Additionally, data from deExplorer shows that users have been exchanging assets on Fantom for other chain assets at a discount through DLN Trade. For instance, Fantom’s 1 USDC is being converted into BSC 0.9 USDC, Polygon 0.88 USDT, etc., indicating a discount of about 10%.
As ripples across the crypto community continue, Binance CEO has also commented on the situation. In an attempt to assure users of Binance being unaffected by this fiasco.
It is important to remember that Multichain operates as a multi-party computation (MPC) bridging network. It facilitates the transfer of assets between chains by locking the original assets on one chain and minting derivative assets on the destination chain.
This process is reversed during withdrawals. Multichain has always claimed that for enhanced security, cryptographic keys controlling the process are split into multiple shards. In the light of this development, it is indeed an alarming situation for the crypto community.
This situation also has the potential to undermine trust in the security protocols of blockchain networks. Investigations are ongoing to ascertain the cause behind this abnormal asset movement and to determine if there were any unauthorized withdrawals.
As Multichain’s integrity is on the line, it is imperative for them to address these concerns promptly to preserve user trust and confidence in the cryptocurrency ecosystem. How will things unfold, time will tell. For now, crypto users are advised to stay vigilant.