A multichain has issued a critical alert due to a recent loss of $126 million in assets


Users were cautioned by Multichain not to utilize the network after $126 million in assets were transferred off of it.

Due to concerning withdrawal of assets, the cross-chain bridge platform Multichain has issued a warning to its users. Many crypto assets were transferred from Multichain’s bridge installations on Fantom and Dogecoin to other wallets in the outflow.

According to a tweet sent by the official Multichain account, the network is temporarily down, meaning that bridge transactions cannot be processed. There is currently no set time for service to resume.

A disturbing occurrence involving the movement of $126 million in assets from the bridge platform to unknown wallets was reported by security company PeckShield, prompting the sudden suspension of operations. The majority of these funds were taken out via Fantom, while the remainder used Dogechain.

Loki Zeng, an on-chain expert and former researcher at Huobi Ventures, hypothesised that the attacker could have access to private key shards that control Multichain’s multi-party computing wallet because of the asset outflows. This was due to the fact that transferring the assets took a long time and required a $2 stablecoin test transfer prior to the large outflows.

In addition, the various stolen crypto assets from Multichain were all placed in their own individual wallets, where they remained untouchable for some time. Zeng speculates that a white hat hacker may have been involved in this incident. Whitehats, in the context of crypto security, are ethical experts who put their knowledge to work protecting users’ money rather than stealing it. This interpretation has not been confirmed and is thus only speculation at this moment.

The Fantom Foundation has sent a message to Fantom token holders while the cryptocurrency world continues to speculate on the extent of this security vulnerability. According to the Foundation’s explanation, “For the avoidance of doubt, FTM was never issued or managed by Multichain,” meaning that wFTM, FTM ERC-20, and FTM on the Opera [EVM network] are all unaffected. This remark gave the impression that only wrapped assets made possible by Multichain’s bridging service and not directly related to the Fantom team would be affected by the problem.

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