Circle and Tether Freeze $65M in Assets Transferred from Multichain

Stablecoin issuers Circle and Tether have taken action to freeze over $65 million in assets associated with the suspected exploit of Multichain, a cross-chain router protocol. The decision follows substantial and unexplained outflows from the Multichain MPC bridge on July 6.

According to 0xScope, a knowledge graph protocol, three addresses that received at least $63.2 million in USD Coin (USDC) from Multichain have been frozen. Additionally, the Fantom Foundation reported that more than $2.5 million in Tether (USDT) has been frozen from two addresses identified as “Multichain Suspicious Addresses” on Etherscan.

The abnormal transfer of assets affected multiple wallets, including those connected to Multichain’s Fantom bridge, Dogechain, Moonriver, Kava, and Conflux’s ecosystems. However, the cause of these unusual asset movements remains unclear.

Multichain took to Twitter to announce the suspension of its current services, without providing a specific timeline for resumption. It advised users against utilizing the Multichain bridging service, warning that “all bridge transactions will be stuck on the source chains.”

Michael Kong, CEO of Fantom protocol, remarked that the fund transfer does not appear to be a typical hack since the assets sent to the alleged attacker’s wallets have not been further transferred. Investigations into the incident are ongoing.

Multichain enables users to transfer tokens across different networks. However, the protocol has encountered technical and operational challenges since its leadership disappeared several weeks ago. Bridges like Multichain have become prime targets for crypto hackers, with several incidents reported in 2022.

A recent report from blockchain security firm SlowMist revealed that over $30 billion in crypto assets has been hacked in numerous incidents since 2012. The most common types of hacks include smart contract vulnerabilities, rug pulls, flash loan attacks, scams, and private key leaks.

The report further highlighted that there have been 118 exchange hacks, 217 Ethereum ecosystem hacks, 162 BNB Smart Chain ecosystem hacks, 119 EOS ecosystem hacks, and 85 hacks involving nonfungible tokens (NFTs). The cumulative losses from crypto exchange hacks over the past decade exceed $10 billion.

For more news, find me on Twitter or subscribe to my YouTube channel.

What is your opinion on this issue? Leave me your comment below! I’m always interested in your opinion!

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended for you