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Scam Alert: Multichain Recording Mass Outflow of Funds

Fri, 07/07/2023 - 08:10
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Godfrey Benjamin
Multichain seeing asset exodus on-chain with renewed fears of exploits
Scam Alert: Multichain Recording Mass Outflow of Funds
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Multichain protocol, the embattled multi-asset infrastructure developed for arbitrary cross-chain interactions, is recording several outflows that suggest an exploit might be underway. According to Arkham Intelligence data, the protocol has seen as much as $125 million in assets moved away from the platform to different chains. While it remains unclear how much has been lost, the Fantom Bridge has seen a total departure of 122 million assets.

In a bid to minimize the carnage being caused by unknown actors, the Multichain Bridge has been suspended, a move that is becoming quite frequent with the protocol. Commenting on the event, the Multichain team said it is investigating the incident, affirming that the lockup assets on the Multichain MPC address have been moved to an unknown address abnormally.

Besides the halting of the chain to deter additional funds movement, the Multichain team advised its users to revoke all contract addresses related to the protocol as a more proactive preventive measure.

A unique impact of these exploits is that users are now able to swap or move assets across the bridge at a significant discount. Impacted chains include Fantom, Moonriver, Kava, Dogechain, Conflux and ETHW.

Multichain (MULTI) Down 23% as Fears of Rugpull Swell: Details

Compounded woes for Multichain

Multichain is in a very fragile state as suspicious activities within the protocol are becoming a norm that is now riling up users and investors.

As reported earlier by U.Today, the protocol was feared to have been rugpulled back in May, when some of its chain transactions were inoperable due to a force majeure event. Despite the massive crash in the price of the MULTI token, the protocol resumed active work that now seems to be derailed by current events.

As usual, the native token appears to be the most impact ed, and it is down by as much as 15.38% at the time of writing to $2.62.

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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.