The cross-chain routing system Multichain is believed to have been exploited, and stablecoin issuers Circle and Tether have reacted by freezing more than $65 million in assets related to those transactions. This reaction comes after the Multichain MPC bridge saw massive outflows on July 6; the cause of these outflows is currently unknown.
Three addresses that received about $63.2 million in USD Coin (USDC) from Multichain have been locked, according to the knowledge graph protocol 0xScope. Additionally, according to the Fantom Foundation, two addresses listed as “Multichain Suspicious Addresses” on Etherscan have had more than $2.5 million in Tether (USDT) frozen.
On July 6, a number of wallets were impacted by an anomalous asset transfer, which led to the removal of approximately $125 million worth of cryptocurrency. The Fantom bridge on Multichain, as well as Dogechain, Moonriver, Kava, and Conflux, were all impacted by this occurrence.
Uncertainty surrounds the precise reason behind the asset transfer that followed the exploit. Circle and Tether have frozen cash in an effort to limit future harm and stop any potential unauthorized use of the stolen assets.
The ICE cryptocurrency project’s Daniele Sestagalli declared that the protocol will destroy the $1.85 million worth of ICE tokens that were taken during the Multichain attack. Users of the Fantom Multichain who were impacted by the exploit will be given WAGMI tokens as compensation in an airdrop to replace the ICE tokens that were burnt.
It is crucial to keep in mind that the exploiter probably still has access to the remaining stolen assets, which are valued at more than $56 million, notwithstanding the blacklisting and token burning. The incident demonstrates the difficulties blockchain protocols and the ecosystems that support them confront in preventing and reducing the effects of security breaches and attacks.
A big breach was found on July 7 and Multichain, a cross-chain router protocol, had to cease operations. The protocol revealed that assets from the MPC smart contract had been transferred in an unusual manner.
To enable the transfer of assets between several blockchains, Multichain’s bridge locks up assets on its MPC smart contract. These assets were locked up and were to be transferred to other chains, but the exploiters particularly targeted them and took them. The Multichain team is presently looking into the specifics of the issue.
According to PechShield’s calculations, the exploit’s stolen assets have an approximate $126 million worth of value. There is no set timeframe for when Multichain will resume normal operation, and activities have been paused for more than 30 hours as of right now.