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Multichain bridge hack forces Circle to freeze $63M in USDC

Circle has blacklisted three wallet addresses associated with the hack.

Following the attack on Multichain, Circle blacklisted three wallets that have been linked to the hack.

This follows a close monitoring of the breach that had earlier affected the protocol on Friday morning.

Circle freezes USDC wallets

USDC issuer Circle have frozen three wallets that received significant outflow of funds from the Multichain protocol.

Security company PeckShield said that Circle’s response has resulted in the freezing of USDC valued at about $63 million, which was one of the assets involved in the breach.

Mysterious outflows of $126 million worth of crypto assets from Multichain’s bridge deployments on Fantom, Moonriver, and Dogechain to various third-party wallets occurred during the incident.

Multichain has taken to its Twitter account to inform users that it was suspending transactions and other services.

They stated, “The Multichain service has currently stopped, and all bridge transactions will remain stuck on the source chains. There is no confirmed resumption time. Please refrain from using the Multichain bridging service for now.”

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


On-chain expert Loki Zeng, who was once a researcher at Huobi Ventures, has proposed a theory for the massive asset outflow from the Multichain breach.

He suggested that the person or individuals responsible for the attack might have access to some of the private keys that control the Multichain multi-party computation wallet.

The fact that the asset transfer took place over a long period of time and even included a preliminary transfer of $2 in stablecoins before the significant withdrawals serves as the foundation for his argument.

Circle’s move has been lauded as commendable. The larger cryptocurrency community will be keenly monitoring the investigation’s progress for updates and any new steps made to tighten security processes.

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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