Multichain Shuts Down Operations After $122 Million Outflows from Fantom Bridge (2024)

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by BSCN

July 7, 2023

The largest exploit occurred on the Fantom bridge, resulting in the loss of $122 million across multiple assets, including wBTC, USDC, USDT, and various altcoins.

Massive Outflows Hit Multichain's Fantom Bridge

Cross-chain protocol Multichain has suspended its operations following massive outflows to multiple wallets, totaling a staggering $125 million.

The largest exploit appears to have occurred on the Fantom bridge, where $122 million in assets, including wBTC, USDC, USDT, and other altcoins, were drained.

Multichain, in a tweet, reported that lockup assets on the Multichain MPC address were abnormally moved to an unknown address. The team is currently investigating the situation and has advised all users to suspend the use of Multichain services and revoke any contract approvals associated with the platform.

This incident adds to Multichain's existing troubles, which include technical issues and the absence of its CEO. Concerns had already been mounting when unexplained outflows were observed from Multichain's Fantom, Moonriver, and Dogecoin bridge contracts, leading to fears of a potential hack.

According to reports, some users were utilizing DLN Trade to exchange assets on the Fantom chain for assets on other chains at a discounted rate. Transactions showed conversions such as Fantom 1 USDC to BSC 0.9 USDC and Polygon 0.88 USDT, suggesting a discount of approximately 10%.

Cryptocurrency exchange Binance has also decided to suspend deposits and withdrawals for eight altcoins associated with the Multichain protocol.

The price of Multichain ($MULTI) fell by more than 16% in a few hours after the news became public and is now trading at $2.62.

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