The developers have suspended the service indefinitely

Multichain cross-chain protocol hacked for $120 million

07.07.2023 - 09:35


4 min

What’s new? On July 6, members of the crypto community recorded an abnormal outflow of funds from the Multichain cross-chain protocol. The attack affected Fantom, Moonriver, and Dogechain bridges, and the total amount of damage amounted to about $108 million. The project’s team said it could not explain the movement of funds and was investigating, and urged users to withdraw all contracts related to Multichain. The developers later suspended the service indefinitely.

More details about the situation. A total of about $102 million in cryptocurrencies, including $7214 WETH ($13,6 million), 1024 WBTC ($31 million), and USDC worth $58 million, were withdrawn from Ethereum’s smart contract of the Fantom bridge. USDC and USDT worth $5,87 million were withdrawn from the Moonriver bridge’s contracts to Ethereum, leaving the project with about $700 000.

In addition, $666 000 was withdrawn from Ethereum’s contract of the Dogechain bridge, representing more than 86% of the total deposits. As a result, the project’s reserves are almost depleted.

Multichain is a multi-party computation (MPC) bridging network. The developers claim that the cryptographic keys controlling the protocol are divided into many parts and distributed throughout the network. In theory, this should prevent the possibility of unauthorized withdrawals by one person or group.

Multichain has been experiencing technical problems over the past few weeks. On May 31, the team announced that the CEO, who had sole control over some of the protocol’s router servers, was missing. The team’s lack of access to them led to transaction delays. On July 5, crypto exchange Binance suspended the withdrawal of some of Multichain’s derivative tokens.

Binance CEO Changpeng Zhao said that the exchange’s team is ready to help solve the Multichain problem, and assured that the hack did not affect the platform or its users.

On July 2, the Poly Network DeFi protocol was hacked, resulting in hackers releasing 57 crypto assets worth billions of dollars across 10 networks. The incident affected Ethereum, BNB Chain, Polygon, Avalanche, and Heco blockchains, among others. According to PeckShield, the hackers managed to steal only $5 million.

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