On Thursday, July 6th. The multichain bridge has seen abnormally large inflows in what appears to be a multi-million dollar platform exploit. after a few hours. Multichain Protocol announced that they have stopped operations.
According to reports, the staggering $125 million worth of multichain assets residing in the multichain multichain protocol has crossed several different wallets. Fantom Bridge appears to be facing the largest exploit at $122 million with the exit of its entire holdings of WBTC, USDC, USDT and other altcoins.
Shortly after, Multichain Protocol announced that they were investigating.
Through their official Twitter account, they stated: “Assets on 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 use of the Multichain Services and revoke all contract consents relating to Multichain.”
Multichain has been struggling for more than a month due to technical issues and the absence of its CEO. Concerns arose on Twitter when three unexplained outflows occurred from Multichain's Fantom, Moon River and Dogecoin contracts.
MultiChain bridge under attack citing data from deExplorer. Renowned crypto analyst Colin Wu reports that some users are using DLN Trade to trade assets on the Fantom Chain for assets on other chains at a discount. Recent transactions show that Fantom 1 USDC can be converted into BSC 0.9 USDC, Polygon 0.88 USDT and more, with around 10% discount.
A day earlier, cryptocurrency exchange Binance also suspended deposits and withdrawals of eight altcoins linked to the Multichain protocol. Binance has announced that it will stop supporting several altcoin projects including Alchemy Pay (ACH) on BNB Smart Chain, Spell Token (SPELL) on Avalanche C-Chain, and six other low-market-cap projects on Ethereum and Phantom.
