Cross-chain protocol multi-chain (MULTI) Stop Due to the abnormal movement of funds from the MPC address, we will suspend the service today.

Blockchain security company Pecshield report Multichain exploited $126 million, attackers moved funds from its Fantom (FTM) and Moonriver (MOVR) bridges.

Multi-chain exploit
Source: Pecshield

Following this incident, Multichain advised users to revoke all approvals related to the protocol.Phantom Foundation Said “We are assessing the situation and will provide an update as soon as we have more to share.”

Multi-chain exploit

Multichain has yet to release details of the exploit, but initial reactions from the community suggest that the protocol’s private keys may have been compromised.

CertiK, the smart contract auditor, Tied It was an attack on private key compromise, which was outside the scope of previous audits, he added.

On-Chain Detective Loki Zen backed up This view notes that asset transfers continued for a long period of time. Zeng added that the attacker may have somehow taken full control of the protocol’s private key fragment above the threshold.

Web3 Knowledge Graph Protocol 0xScope said The impact of this exploit extends to other chains such as Kava, Dogechain, Conflux and ETHW. The company added that multiple stablecoin assets across these chains have been de-pegged.

Multi-chain exploit
Source: 0xScope

On the other hand, Daniele Sestagali of the ICE crypto project said, said The team announced that it had decided to burn $1.85 million worth of ICE tokens affected by the exploit. He added that the burnt token will be airdropped to Fantom Multichain users as the new token WAGMI.

Multi Down 16%

Multichain MULTI Token Drops Over 16% After Attack, To $According to 2.60 at the time of writing of crypto slate data.

This exploit made the protocol’s problems even worse, as it has faced some challenges recently.

In May, the Multichain team lost contact with CEO Zhao Jun amid rumors that he was arrested in China. Coincidentally, the protocol also faced a cross-chain bridge upgrade failure around the same time, and the team attributed the unavailable routes to “force majeure” circumstances.

Among recent challenges, Binance suspended support for eight bridge tokens from its cross-chain protocol earlier this week until further notice.

Multichain goes out of service after $126 million exploit first appeared on CryptoSlate.

By Jules

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