Blockchain security firm Peckshield Reported<\/a> that Multichain was exploited for $126 million, with the attacker moving funds from Fant itsom (ftm<\/a>) and Moonriver (MOVR<\/a>bridge.<\/p>\n Following the incident, Multichain advised users to revoke all approvals related to the protocol. Phantom Foundation said<\/a> it was “evaluating the circumstances and will provide an update as soon as we have more to share.”<\/p>\n Even though Multichain has not yet released the details of the exploit, initial reactions from the community suggest a possible compromise of the protocol’s private key.<\/p>\n Its smart contract auditor, CertiK, tied<\/a> the attack to compromise a private key, adding that this was outside the scope of its earlier audit.<\/p>\n On-chain sleuth Loki Zeng corroborated<\/a> This view, noting that the asset transfer lasted for a long time. Zeng added that the attacker might have somehow obtained complete control of the protocol’s private key fragments exceeding the threshold.<\/p>\n Web3 Knowledge Graph Protocol 0xScope stated<\/a> that the impact of the exploit extends to other chains like Kava, Dogechain, Conflux, and ETHW. The firm added that multiple stablecoin assets across these chains have depegged.<\/p>\n Meanwhile, Daniele Sestagalli of the ICE crypto project stated<\/a> that the team has decided to burn $1.85 million worth of ICE tokens impacted by the exploit. He added that the burned tokens would be airdropped to Fantom Multichain users as a new token, WAGMI.<\/p>\n Multichain’s MULTI token fell by over 16% after the attack to $2.60 at the time of writing, according to CryptoSlate’s<\/em> data.<\/span><\/p>\n The exploit has further exacerbated the protocol’s issues as it has faced several challenges recently.<\/p>\n In May, amid rumors of CEO Zhao Jun’s arrest in China, the Multichain team lost contacts<\/a> with him. Coincidentally, the protocol faced a botched upgrade<\/a> of its cross-chain bridge during the same period, with the team attributing the unavailable routes to a “force majeure” situation.<\/p>\n Amidst the recent challenges, Binance suspended<\/a> Support for eight bridged tokens from the cross-chain protocol earlier this week until further notice.<\/p>\n The post Multichain halts services after $126M exploit<\/a> appeared first on CryptoSlate<\/a>,<\/p>\nMultichain exploit<\/h2>\n
![\"Multichain](\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/F0aRYIAakAAP6r1-scaled.jpg\")
Multi down 16%<\/h2>\n