In Wake of Asset Outflows, Multichain Warns Users to Refrain from Using Services
In response to alarming asset outflows, Multichain, a cross-chain bridge platform, has advised its users to avoid using its services. The outflow involved a significant amount of crypto assets being moved to third-party wallets from Multichain’s bridge deployments on Fantom and Dogechain. The Multichain service is currently stopped, and all bridge transactions are stuck on the source chains with no confirmed resumption time.
Key Points:
– $126 million worth of assets were mysteriously transferred from Multichain to unknown wallets.
– On-chain analyst Loki Zeng suggests that the attacker may have access to private key shards controlling Multichain’s wallet.
– Each type of crypto asset taken from Multichain was transferred to separate wallets, indicating the possibility of a white hat hacker’s involvement.
– Fantom Foundation clarifies that Fantom tokens are not affected by the crisis, as they were never managed by Multichain.
– Multichain has experienced previous security breaches and currently oversees over $1.2 billion in assets.
Hot Take
The recent asset outflows and security breach have raised concerns about the safety and reliability of Multichain’s services. Users are advised to exercise caution and consider alternative options for cross-chain transactions to mitigate potential risks. Multichain must take immediate action to address the security vulnerabilities and regain the trust of its users to prevent further asset losses.
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