2023-07-10 09:03:19
Multichain has suspended operations following an unexplained transfer of millions of dollars worth of cryptoassets on July 6. Stablecoin issuers Circle and Tether have frozen more than $65 million in assets. These are related to a suspected attack on the router protocol between Multichain chains. The move came following an inexplicably large payout was made from the Multichain MPC bridge on July 6. According to the 0xScope graph protocol, three addresses that received at least $63.2 million USDC from Multichain were frozen. Another report from the Fantom Foundation notes that more than $2.5 million in Tether (USDT) has been frozen at two addresses listed by Etherscan as “Suspicious Multichain Addresses”. On July 6, more than $125 million worth of cryptocurrency was withdrawn from multiple crypto wallets, affecting Multichain’s Fantom bridge as well as the ecosystems of Dogechain, Moonriver, Kava, and Conflux. The reason for the unusual transfer of assets is still unclear. On Twitter, Multichain announced that it will suspend its running services. No date has been announced for when services will be restarted. “Please do not use Multichain’s service now.” – they warned, adding that “all transactions involving the bridge are stuck on the source chains”. Fantom protocol CEO Michael Kong reportedly said that the transfer “does not appear to be a general hacking attack” as the funds sent to the alleged attacker’s wallets were not transferred elsewhere. The investigation is still ongoing. Networks like the Multichain platform are very vulnerable Multichain allows users to transfer tokens between different networks. However, the platform has been facing technical and operational challenges since management disappeared a few weeks ago. Bridges like Multichain are among the most vulnerable targets of cryptohackers, and there were several incidents similar to this one last year. According to a recent report by blockchain security firm SlowMist, more than $30 billion in crypto assets have disappeared in hundreds of hacking attacks since 2012. The top five most common attacks include vulnerabilities in smart contracts, rug pulls, flash loan attacks, various scams, and theft of private keys. So far, the report has quantified 118 exchange hacks, 217 Ethereum ecosystem attacks, 162 BNB Smart Chain ecosystem attacks, 119 EOS ecosystem attacks, and 85 NFT hacking attacks. Over the past decade, crypto exchanges have lost a total of more than $10 billion to hacker attacks.
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