Following the attack, the MULTI token of Multichain fell 16%. Today, the cross-chain protocol Multichain (MULTI) ceased operations after confirming abnormal fund movements from its MPC address.
cross-chain protocol Multichain
Peckshield, a blockchain security firm, reported that Multichain was hacked for $126 million, with the attacker transferring funds from its Fantom (FTM) and Moonriver (MOVR) bridges.
Following the incident, Multichain advised users to revoke all approvals related to the protocol. Fantom Foundation said it was “evaluating the circumstances and will provide an update as soon as we have more to share.”
Exploitation of multiple chains
Although Multichain has not yet released the details of the exploit, initial community reactions point to a possible compromise of the protocol’s private key.
CertiK, the company that audits smart contracts, linked the attack to a private key compromise, adding that this was outside the scope of its previous audit.
Loki Zeng, an on-chain sleuth, agreed, noting that the asset transfer took a long time. Zeng went on to say that the attacker could have obtained complete control of the protocol’s private key fragments, surpassing the threshold.
According to Web3 Knowledge Graph Protocol 0xScope, the impact of the exploit extends to other chains such as Kava, Dogechain, Conflux, and ETHW. Multiple stablecoin assets across these chains have depegged, according to the firm.
Meanwhile, the ICE crypto project’s Daniele Sestagalli announced that the team has decided to burn $1.85 million in ICE tokens affected by the exploit. He also stated that the burned tokens would be distributed as a new token, WAGMI, to Fantom Multichain users.
According to data, Multichain’s MULTI token fell by more than 16% following the attack, to $2.60 at the time of writing.
The exploit has exacerbated the protocol’s problems, which have recently been exacerbated by a number of challenges. The Multichain team lost contact with CEO Zhao Jun in May, amid rumors of his arrest in China.
During the same time period, the protocol experienced a botched upgrade of its cross-chain bridge, with the team attributing the unavailable routes to a “force majeure” situation.
Binance suspended support for eight bridged tokens from the cross-chain protocol earlier this week due to recent issues.
To read our blog on “Bitcoin and Ether may trade for $7 Billion in expired option,” click here