Circle and Tether Freeze $65M in Assets Transferred from Multichain

by Jul 9, 2023CryptoNews, Uncategorized0 comments

Content: Multichain, a cross-chain router protocol, has faced a significant setback after an unexplained transfer of cryptocurrency assets worth millions of dollars occurred on July 6, 2023. In response, stablecoin issuers Circle and Tether have taken action by freezing over $65 million in assets associated with the suspected exploit of Multichain’s protocol. This development follows large outflows from the Multichain MPC bridge.

The freeze specifically targets three addresses that received at least $63.2 million in USD Coin (USDC) from Multichain, as well as two addresses containing over $2.5 million in Tether (USDT). Additionally, the abnormal transfer of over $125 million in various cryptocurrencies affected multiple wallets associated with Multichain, including Fantom Bridge, Dogechain, Moonriver, Kava, and Conflux’s ecosystems. The cause behind this unusual asset movement remains unclear.

As a result of these events, Multichain has announced the suspension of its current services, without providing a definite timeline for resumption. Users are advised not to utilize the Multichain bridging service, as all bridge transactions will be stuck on the source chains until further notice. Investigations into the incident are still ongoing.

Fantom protocol CEO Michael Kong has remarked that the fund transfer does not resemble a typical hack, as the assets sent to the alleged attacker’s wallets have not been further transferred. Multichain has been grappling with technical and operational challenges since its leadership vanished several weeks ago. It is worth noting that bridging services like Multichain have been frequently targeted by crypto hackers, with numerous incidents reported in 2022.

According to a recent report from blockchain security firm SlowMist, more than $30 billion in crypto assets has been hacked in hundreds of incidents since 2012. The most common types of hacks include smart contract vulnerabilities, rug pulls, flash loan attacks, scams, and private key leaks. The report also reveals that there have been 118 exchange hacks, 217 Ethereum ecosystem hacks, 162 BNB Smart Chain ecosystem hacks, 119 EOS ecosystem hacks, and 85 hacks involving nonfungible tokens (NFTs). In the past decade alone, losses exceeding $10 billion have resulted from crypto exchange hacks

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