{"id":119096,"date":"2023-07-07T04:16:09","date_gmt":"2023-07-07T04:16:09","guid":{"rendered":"https:\/\/dripp.zone\/news\/over-120m-drained-from-multichain-bridge-crypto-news\/"},"modified":"2023-07-07T04:16:11","modified_gmt":"2023-07-07T04:16:11","slug":"over-120m-drained-from-multichain-bridge-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/over-120m-drained-from-multichain-bridge-crypto-news\/","title":{"rendered":"Over $120M Drained From Multichain Bridge\n – Crypto News"},"content":{"rendered":"

<\/p>\n

Team Behind Beleaguered Cross-chain Bridge Is Investigating Suspicious Token Transfers<\/p>\n

\n

Multichain, a cross-chain bridging protocol that operates on dozens of blockchains, has been hit by an exploit whose cause is yet to be determined. The team behind the protocol has confirmed<\/a> that over $120M of digital assets were transferred to unknown wallets and that it is investigating the incident.<\/p>\n

<\/figure>\n

Multichain has asked users to revoke all approvals related to its smart contracts and to stop using its services.<\/p>\n

Following the mass transfers, some $121M in assets comprising wBTC, USDC, and USDT, as well as a basket of altcoins formerly held on Multichain’s Fantom bridge, now reside among<\/a> numerous<\/a> separated<\/a> wallet<\/a> addresses<\/a>,<\/p>\n

<\/p>\n

\"the
Phantom Bridge Wallet<\/figcaption><\/figure>\n

<\/a><\/p>\n

Fantom, a Layer 1 blockchain that uses Multichain as its primary bridge, released a message acknowledging, \u201ca situation unfolding on the Multichain bridge. We are actively evaluating the circumstances and will provide an update as soon as we have more to share.\u201d<\/p>\n

\u201cSeems like a hack or rug pull,\u201d Twitter user Spreekaway<\/a> told The Defiant, adding that while it’s difficult to pin down an attack vector, a breach may have occurred as a result of compromised authentication.<\/p>\n

Multichain’s MULTI token is down over 15% in the wake of the attack.<\/p>\n

<\/p>\n

\"the
Multi Price<\/figcaption><\/figure>\n

<\/a><\/p>\n

LayerZero Denies Involvement<\/h4>\n

Earlier today, cross-chain interoperability protocol Layer Zero announced support for a number of assets on Fantom, including USDC, USDT, WETH and WBTC. This led to some speculation that the transfers could be related to a bridge migration.<\/p>\n

However, in a message shared<\/a> By Twitter user pcaversaccio, the Layer Zero team confirmed that they were not behind the transfers.<\/p>\n

\"the<\/figure>\n

Popsicle Burns ICE Tokens<\/h4>\n

Before any concrete information became available, Popsicle Finance developer Daniele Sestagalli announced the decision to burn any exposed tokens.<\/p>\n

\u201cTo leave nothing to chance, we have decided to burn the $ICE tokens that were in the multichain-affected wallet,\u201d Sestagalli tweeted<\/a>,<\/p>\n

He added that Popsicle will be \u201cairdropping the burned $ICE tokens in the form of $WAGMI to Fantom Multichain users. More information about this will be shared in the near future.<\/p>\n

Ongoing trouble<\/h4>\n

Multichain’s woes appear to have compounded since early June when server management issues resulting from an absent CEO forced the bridge to suspend services for a number of blockchains.<\/p>\n

This previous outage drew attention to Multichain’s lack of redundancy, and the potential risks that such centralization poses to decentralized networks.<\/p>\n

Neither Multichain nor Fantom immediately responded to a request for comment from The Defiant.<\/p>\n<\/div>\n