Circle and Tether have frozen over $65 million in assets linked to a suspected exploit of Multichain, a cross-chain router protocol. 🤦♂️
This action followed unexplained outflows from the Multichain MPC bridge on July 6. Three addresses receiving $63.2 million in $USDC from Multichain have been frozen, and the Fantom Foundation reported freezing over $2.5 million in $USDT held by two addresses labeled as “Multichain Suspicious Addresses” on Etherscan.
The incident involved the withdrawal of over $125 million in cryptocurrencies from multiple wallets, impacting various ecosystems like Multichain’s Fantom bridge, Dogechain, Moonriver, Kava, and Conflux. Multichain temporarily halted its services, advising users against utilizing the bridging service due to transactions being stuck on source chains. Investigations are ongoing to understand this perplexing situation. These events highlight the vulnerabilities of cross-chain router protocols and the risks faced by the crypto industry, emphasizing the need for enhanced security measures. 📛