Multichain Hack: This Impersonator is Out to Defraud More Users

It looks like hackers are not taking a break at all as just a few hours after the Multichain hack, these bad actors are on the rampage again. This time around, they have taken to Twitter to circulate a phishing link.

Timeline of Multichain

Circle, the official issuer of USDC, the second largest stablecoin by circulating supply, has frozen $63 million from the Multichain hack. Compiled Etherscan data on July 7 shows that the stablecoin issuer froze $27.65 million, $30.1 million, and $5.5 million in three transactions, hampering the hacker's cash-out efforts.

Cross-Chain Router Protocol Multichain has issued an urgent warning to its users after approximately $126 million worth of cryptocurrencies were drained from its platform. The service has suspended operations, with all bridge transactions currently stuck on the source chains.

Binance, the leading cryptocurrency exchange, recently temporarily stopped processing withdrawals and deposits for several Multichain-bridged assets. In a Twitter post, the platform stated that these restrictions would take effect from the 7th of this month and remain in place for the foreseeable future.

Binance, the largest crypto exchange by volume, withdrew support for eight Multichain bridge tokens, effective July 7, 2023. The decision comes after the previous suspension in May due to a partial pause in the functioning of cross-chain routes in the Multichain (MULTI) protocol.

In a stride towards diversification, NFT marketplace Magic Eden has recently divulged its initiative to assimilate BRC-20 token functionality within its open-source secondary marketplace and creator launchpad.

Storage proofs, a feature that could minimize cross-chain exploits by allowing users to keep their assets on one chain and prove that it's there on a different chain, will go live on Starknet soon.

Gate.io, a prominent digital asset exchange, has issued a warning of potential legal actions as rumors of insolvency swirl around the platform. Speculation linking Gate.io to Multichain, a cross-chain protocol currently grappling with complications, has fueled the chatter within the cryptocurrency sphere.

After plunging as low as $3.3156 last week following the news of its force majeure challenge that saw some of its operations halted a few weeks back, Multichain protocol has resumed operations, according to insights shared by crypto analytics provider Lookonchain.

On-chain data showed that multichain transactions on Polygon, Avalanche, zkSync Era, and Kava networks resumed on Monday.Cross-chain services across 11 chains remain suspended as the team announced last month.Users first reported abnormal activity and stuck transactions on May 21, prompting exits from investors and ecosystem stakeholders in the following days.The MULTI token increased 46% in price on June 5 after activity resumed across these four chains.Monday's activity could suggest that the project's CEO is in touch with the team. Multichain transactions on Polygon, Avalanche, Zksync Era, and Kava networks resumed on Monday, June 5 data from on-chain explorers showed.

Multichain Network token MULTI rose nearly 30% after several users confirmed that the cross-chain bridge services resumed operation on its official Telegram channel on June 5. According to CryptoSlate's data, MULTI reached as high as $4.89 before retracing to $4.39 at the time of writing.