Main navigation

Fantom Took Precautionary Measures to Contain Multichain Implosion: Details

Sat, 07/15/2023 - 10:36
article image
Godfrey Benjamin
Fantom Foundation has requested a number of stablecoins be frozen
Fantom Took Precautionary Measures to Contain Multichain Implosion: Details
Cover image via

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

Fantom Foundation is acting in a proactive manner following the latest update from the embattled Multichain protocol. According to Fantom Foundation, it has requested the top stablecoin issuers, including Circle (USDC), Tether Holdings Ltd. (USDT) and TrueUSD (TUSD), to freeze the stablecoins associated with the Multichain bridge as the primary assets that were affected in the latest bouts of exploit by the firm.

Multichain's new revelation

Fantom Foundation acted on the news that the Multichain protocol shared on Friday, in which it acknowledged that Chinese authorities had arrested top figures in its leadership. The protocol confirmed that its Chief Executive Officer Zhaojun was arrested on May 31 and has lost contact.

Multichain to Go Down as Horrifying Story Shared by Project

Zhaojun's sister, who had been playing a pivotal role in the preservation of some of the protocol's assets, was also taken in by the police on July 7, after which contact was also lost. These two arrests had incapacitated the protocol, and with the lack of access to operational funds, the remaining Multichain team had decided to cease operations.

In the long update, the team confirmed that they have no access to deactivate the Domain Account, and as such the platform is still active. Users were advised to refrain from sending funds to the addresses linked to the protocol.

Fantom and way forward

Fantom Foundation said it was disappointed with the news shared by the Multichain protocol, and after the request to freeze the top three stablecoins affected, the firm said it can confirm a total of $62 million has been locked.

Scam Alert: Multichain Hack Victims Targeted by Fantom (FTM) Impersonators

Fantom promises to identify other assets that might have been affected in the process so as to lock them up also. Prior to this time, Fantom revealed its plans to pursue an alternative bridge infrastructure by seeding the duo of Axelar Network and LayerZero.

article image
About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.