Sixth-Largest Loss In History: Multichain Loses $126M Worth Of Cryptocurrencies In Suspected Exploit

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.

Timeline of Multichain

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.

Some cross-chain bridges of the Multichain protocol are back online as on-chain experts confirmed transactions happening on the protocol on June 5. Admin also confirmed that Multichain's router2 is back, indicating that the core part of the bridge is operating normally.

Four days ago, on May 31, 2023, the cross-chain protocol Multichain announced on Twitter that the team has been unable to locate the firm's CEO. As a result, controls to several blockchain network routers have been impaired.