Major Security Breach in Multichain: User Tokens Worth $130 Million Affected
– Developers of cross-chain router Multichain have confirmed an exploit that resulted in the loss of $130 million worth of user-supplied tokens.
– Users are advised to suspend the use of Multichain services and revoke all contract approvals related to Multichain.
– Multichain’s service is currently stopped, and bridge transactions are stuck on the source chains with no confirmed resume time.
– Bridges like Multichain are a vulnerable part of the crypto ecosystem, with $2.66 billion lost to bridge-based exploits in recent years.
– Tokens stolen from Multichain have not been sent to exchanges or mixed using services like Tornado Cash.
Stolen Tokens and Market Impact
– The stolen tokens include $62 million worth of USD coin (USDC), $31 million in wrapped bitcoin (wBTC), and $13 million in wrapped ether (wETH).
– The stolen tokens have not been sent to exchanges or mixed using services like Tornado Cash as of now.
– The price of Multichain’s MULTI tokens has dropped by 13% in the past 24 hours.
– Other related tokens have also experienced a decline in the past 24 hours, including Fantom (FTM) dropping by 9.9%, Moonriver’s MOVR tokens falling by 13%, and lesser-known dogechain (DC) tokens dropping by 10%.
Impact on Fantom and Dogechain
– Fantom developers clarified that FTM tokens were never issued or managed by Multichain, so wFTM, FTM ERC-20, and FTM on Opera are not affected.
– Despite this clarification, Fantom’s FTM token saw a 9.9% drop in price.
– Dogechain developers confirmed that their network was not directly impacted by the breach but advised users to revoke permissions to Multichain’s Dogechain bridge.
– Dogechain’s DC tokens dropped by 10% in the past 24 hours.
Hot Take: Vulnerabilities in Bridge-Based Systems Pose Significant Risks
The recent security breach in Multichain highlights the inherent vulnerabilities of bridge-based systems in the crypto ecosystem. With $130 million worth of user tokens affected, it is crucial for users to exercise caution and revoke any permissions related to Multichain. This incident serves as a reminder that security measures must be a top priority in the development and use of cross-chain routers and bridges. The decline in prices of related tokens further emphasizes the impact of such breaches on investor confidence. It is imperative for the industry to address these vulnerabilities and enhance security protocols to protect user assets.
Cora Skindell is a standout figure in the world of cryptocurrency analysis, research, and editorial expertise. As a seasoned crypto analyst and researcher, Cora’s insights delve deep into the complexities of digital assets, resonating with a diverse audience. Her ability to dissect intricate crypto concepts is complemented by her adept editorial skills, enabling her to distill complex information into easily understandable content. Cora’s contributions serve as a valuable compass for both seasoned and novice individuals seeking to navigate the dynamic landscape of cryptocurrencies. With a keen eye for detail and a commitment to accuracy, she empowers informed decision-making in the ever-evolving crypto space.
