Multichain Recovers $2.6M Stolen Funds, To Reimburse Losses On Condition

By Micheal On Feb 19, 2022

The cross-chain router protocol recovered 50% of the total funds stolen and designed a compensation plan for eligible investors.

The Cross-Chain Router Protocol announces that after a month-long fight against ongoing exploitation, Multichain recovered 50% of the total amount of stolen funds worth about $ 2.6 million in cryptocurrency. The group has also launched a compensation scheme to cover the losses of consumers.

On January 10, Dedaub a blockchain security expert warned Multichain about two dangers in its liquidity pool and router contracts that were further affecting eight cryptocurrencies like wrapped Ethereum (WETH), wrapped BNB (WBNB), Polygon (MATIC), and Avalanche (AVAX). Thus to avoid any further losses,, the Multichain team advises users to cancel all of the approvals given to the specified tokens so that they can protect their crypto assets.

1/3 We recently identified the "phantom functions" code pattern, which would have led to likely the largest crypto hack ever.

Your code may be vulnerable! You need to check for the pattern in your Solidity/EVM code! https://t.co/pxRqCQFbnS
— Dedaub (@dedaub) January 27, 2022

On the 18th of January, a week afterward the Multichain team instructed consumers to withdraw approvals of the vulnerable smart contracts as an emergency risk control tool. However, various sources report that the warning prompted more hackers to try to extort more than $3 million.

The @MultichainOrg hack is far from being over.
Over the last hours more than additional $1M stolen, rising the total stolen amount to $3M.
One victim lost $960K!https://t.co/fYhYxUojB8 pic.twitter.com/Gvh5hB6t6s
— Tal Be'ery (@TalBeerySec) January 19, 2022

“However, the risk remains for the users who have yet to revoke approvals for the affected router contracts. Importantly, users themselves have to be the ones to revoke the approvals

As of February 18, Multichain reported that 4,861 of the 7,962 users affected had withdrawn their credentials, prompting the remaining 3,101 addresses to take immediate action on their accounts. Of the 1,889.6612 WETH and 833.4191 AVAX stolen funds, the team was able to recover 912.7984 WETH and 125 AVAX (approximately $ 2.55 million, valued at $ 10,000).

“However, no matter how hard we tried, a total of 976.8628 WETH was stolen,” Multichain confirmed. To qualify for compensation through compensation, multichain customers must cancel their accreditation and submit a ticket on the website. “Similarly, we will no longer refund damages incurred after February 18 24:00 UTC.”