Stablecoin Issuers Freeze Over $65 Million in Multichain Assets
Stablecoin issuers Circle and Tether have taken action to freeze over $65 million in assets tied to the suspected exploit of cross-chain router protocol Multichain. The move comes after large outflows from the Multichain MPC bridge on July 6. Three addresses that received at least $63.2 million in USD Coin (USDC) from Multichain have been frozen, as well as over $2.5 million in Tether (USDT) from two addresses listed as “Multichain Suspicious Addresses”. The cause of the abnormal transfer of assets remains unclear.
Key Points:
– Stablecoin issuers Circle and Tether have frozen over $65 million in assets linked to the suspected exploit of Multichain.
– Three addresses that received $63.2 million in USD Coin from Multichain have been frozen.
– Over $2.5 million in Tether has also been frozen from two addresses listed as “Multichain Suspicious Addresses”.
– More than $125 million worth of cryptocurrencies were withdrawn from multiple wallets on July 6.
– The cause of the abnormal transfer of assets is still unknown.
Multichain announced on Twitter that it was suspending its services, without specifying when they would return. The platform warned users not to use its bridging service and stated that all bridge transactions would be stuck on the source chains. CEO Michael Kong of the Fantom protocol commented that the transfer of funds did not appear to be a normal hack, as the assets were not moved elsewhere. Investigations into the incident are ongoing.
Hot Take:
The freeze of assets by stablecoin issuers Circle and Tether is a significant response to the suspected exploit of Multichain. It demonstrates the industry’s commitment to protecting users’ funds and preventing further unauthorized activity. However, the incident highlights the vulnerabilities of cross-chain router protocols and the need for additional security measures to safeguard the crypto ecosystem.
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