• Multichain protocol said that they will be temporarily pausing their operations.
• The protocol is still struggling with technical troubles and the absence of its CEO.

It seems that a multi-million dollar exploit was perpetrated on the Multichain bridge on Thursday, July 6. A statement from the Multichain protocol said that they will be temporarily pausing their operations.

According to estimates, multi-chain assets on the cross-chain protocol Multichain worth a total of over $125 million outflowed a number of wallets. With all of its assets in wBTC, USDC, USDT, and other altcoins flowing out, the Fantom Bridge seems to face the largest exploit of $122 million. Also, the Multichain Protocol quickly said they will be looking into the situation.

The Protocol stated:

“The lockup assets on the Multichain MPC address have been moved to an unknown address abnormally. The team is not sure what happened and is currently investigating. It is recommended that all users suspend the use of Multichain services and revoke all contract approvals related to Multichain.”

Struggle Continues

More than a month has passed with Multichain still struggling with technical troubles and the absence of its CEO. On crypto Twitter, many began to worry that Multichain had been hacked. After three mysterious withdrawals were made from the platform’s Fantom, Moonriver, and Dogecoin bridge contracts.

Popular crypto researcher Colin Wu used data from deExplorer to claim that some users are exchanging Fantom chain assets for other chains through DLN Trade at a discount.

Moreover, recent trades reveal that 1 Fantom USDC can be exchanged for 0.9 BSC USDC, 0.88 Polygon USDT, and more, representing a discount of almost 10%. Recently, Binance also halted trading in eight cryptocurrencies connected to the Multichain protocol. 

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