Significant Outflows of Over $100 Million from Multichain MPC Bridge Raise Concerns of Exploit

Unusual and significant outflows from the Multichain MPC bridge platform are raising concerns of a potential exploit, as millions of dollars worth of cryptocurrencies have been withdrawn.

On July 6, it was observed that around $102 million worth of crypto had been withdrawn from Multichain’s Fantom bridge on the Ethereum side. In addition, $666,000 was withdrawn from the Dogechain bridge, representing more than 86% of its total deposits, and $5 million was withdrawn from the Multichain Moonriver bridge contracts on Ethereum.

The large-scale withdrawals prompted speculation of a possible exploit, with blockchain security firm Peckshield tagging the Multichain team in a tweet highlighting the transactions. Observers on Twitter referred to the event as a potential hack, emphasizing the significant amounts drained from the bridges.

However, it remains unclear whether the contracts were completely drained or if the funds were simply withdrawn by users. CryptoGrafos could not verify the status of the contracts at the time of publication. Attempts to reach the Multichain team on their Discord channel did not yield a response.

In a subsequent tweet, Multichain acknowledged the abnormal movements and stated that they were uncertain about the cause, but were actively investigating the situation.

Multichain is a multi-party computation (MPC) bridging network that facilitates the transfer of assets between different chains. The network employs cryptographic key shards distributed across the network to prevent unauthorized withdrawals and ensure the integrity of the bridging process.

The platform has been facing technical difficulties in recent weeks. In May, Multichain announced the disappearance of their CEO and cited “multiple issues due to unforeseeable circumstances,” leading to delayed transactions. Furthermore, on July 5, Binance temporarily halted withdrawals of certain Multichain derivative tokens due to the network’s failure to process transactions promptly.

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