Team Investigating Potential Exploit in Multichain Bridge After Over $100M Drained

The Multichain MPC bridge platform is currently investigating a potential exploit that has drained over $100 million from its system. On July 6, around $102 million in crypto assets were withdrawn from Multichain’s Fantom bridge on the Ethereum side, along with additional sums taken from the Dogecoin and Moonriver bridge. This abnormal outflow of funds has raised concerns among observers, with blockchain security company Peckshield highlighting the transactions and labeling it as a potential exploit.

The Multichain team has acknowledged the unusual movement of funds and is currently investigating the situation. They have stated that they are unsure of what actually happened. As a precautionary measure, all users are advised to stop using Multichain services and revoke any contract approvals they may have made.

Multichain is a multi-party computation (MPC) bridge network that allows for the creation of derivative assets on a second chain after verifying that the assets have been locked on the first chain. The platform claims to use cryptographic keys that are divided into multiple shards and distributed throughout the system, ensuring that no single individual or entity can make unauthorized withdrawals.

However, in recent weeks, Multichain has been experiencing technical issues, leading to slow transaction processing. Binance, a major cryptocurrency exchange, has even temporarily halted withdrawals of various Multichain derivative tokens due to these problems.

The current exploit and abnormal outflows of funds have put the security and reliability of Multichain’s platform into question. Users are urged to exercise caution and refrain from using Multichain services until the investigation is complete and the platform’s security is confirmed. Multichain will need to address these issues and implement necessary measures to regain user trust and ensure the safety of their funds in the future.

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About The Author

Niels I have been passionate about dogecoin since 2019, and have since become an avid follower and advocate of the cryptocurrency. I keep a close eye on the Dogecoin market and trends, and I'm always up-to-date with the latest news and developments. As a true believer in the potential of dogecoin, I am excited to be a part of the growing community and I'm eager to share my knowledge and experience with others. When not busy with dogecoin, I enjoy golf, and I can often be found on the golf course.

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