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Cross-chain protocol Multichain loses $126M to mysterious attack

Cross-chain bridge Multichain has reportedly lost crypto assets worth $126M.

Cross-chain bridge Multichain lost crypto assets worth $126M to hackers on Friday. 

The breach was by an attacker who siphoned capital out of numerous token bridges. 

Multichain protocol breached

Multichain, a cross-chain router protocol was attacked on Friday. The breach caused the mysterious transfer of $126M worth of digital currencies from the bridge deployments on Fanthom and Dogecoin to third party wallets. 

Though the cross-chain protocol has $1.25B in total liquidity, the attack cost the protocol almost its entire holdings in wBTC, USDC, USDC and other altcoins. 

The bridge confirmed the attack on Twitter. The team noted that assets locked were being “moved to an unknown address abnormally.”

“The lockup assets on the Multichain MPC address have been moved to an unknown address abnormally,” Multichain wrote on Twitter. “The team is not sure what happened and is currently investigating. It is recommended that all users suspend the use of Multichain services and revoke all contract approvals related to Multichain.”

The co-founder of the protocol Dj Qian also corroborated the news of the attack and advised users to revoke permissions granted to Multichain. 

Fanthom  was the most affected, with $118M withdrawn from the chain. The other chains include Ethereum, Avalanche, and Binance Smart Chain. 

Read more: Atomic Wallet was likely breached by North Korean hackers

Woes after woes

Multichain has been under pressure for a few months for bad tech and its AWOL CEO. 

In late may, users began to report failed transactions that were stuck for days. 

As if that wasn’t enough, the team complained that they couldn’t reach the company’s CEO Zhaojun, causing speculations that he was probably arrested in China. The team had later confirmed that the CEO held the private key to the pools whose transactions were stuck. 

Binance suspended some the protocol’s token deposits and paused withdrawals on July 5. 

“Looks like another hack happened on Multichain. This DOES NOT affect users on Binance itself. We have swapped all assets out and closed deposits a while back. Regardless, we offer our assistance in helping with the situation,” Binance CEO Changpend Zhao wrote on Twitter.

Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

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