Money flows through Multichain. The damage approached $250 million
Date: 2023-07-11 Author: Karina Ziganova Categories: CRYPTO PAYMENTS
Hundreds of millions of dollars worth of tokens were withdrawn through the Multichain internetwork router protocol. Several cryptocurrency projects were affected.
Over the past 12 hours, another $117 million has been withdrawn from the Multichain protocol, crypto journalist Colin Wu writes about this, citing Web3 statistics from the DeBank messenger.
The abnormal outflow of assets affected networks such as Arbitrum, Avalanche, Polygon, Optimism, Fantom. All of them leaked to the same address.
According to Beosin, another $103 million was later withdrawn from the protocol. Unknown persons withdrew $24 million in USDC, $29.7 million in fUSDT and $3 million in DAI, as well as $10 million in ETH, $2 million in wrapped bitcoin and $17 million in wrapped ether.
Earlier, on July 7, $126.3 was withdrawn from the Fantom network through the Multichain internetwork router protocol. At the time of the incident, PeckShield analysts suggested that the system had been hacked.
On the account of the alleged attacker, a cryptocurrency worth $126.3 million was found Among the withdrawn tokens are $58 million in the USDC stablecoin, 1020 wrapped bitcoin ($30.9 million), 7200 wrapped ether ($13.7 million) and $4 million in the DAI stablecoin, as well as Chainlink, Curve DAO, YFI, Wootrade Network tokens for an unspecified amount.
Later, the project team confirmed the transfer of money, noting that this is an emergency situation. Now the team is conducting a check. Multichain asked users to revoke all permissions associated with its smart contracts and stop using the services.
The fund also stated that it is aware of the situation with Multichain.
"We are actively assessing the circumstances and will provide an update as soon as we have something to share," Fantom said in a statement.
LayerZero denies involvement
The Layer Zero protocol has previously announced support for a number of assets on Fantom, including USDC, USDT, WETH, and WBTC. This has led to speculation that transfers may be related to token migration. However, the Layer Zero team stated that they were not behind the translations.
"Let's be clear: it wasn't us, but maybe people are moving multi-grid assets to then get them back," the project team suggested.
Past Multichain Problems
During the month of May, Multichain had several technical problems. The project team also revealed that it had lost contact with its CEO after rumors of his detention in China.
The Multichain crisis has worsened since the beginning of June. Back then, server management issues caused by the CEO's absence forced the protocol to suspend service to a number of blockchains.
