Fears of Exploit Arise as Multichain MPC Bridge Witnesses Outflows Exceeding $100 Million

Fears of Exploit Arise as Multichain MPC Bridge Witnesses Outflows Exceeding $100 Million

user avatar

by Max Nevskyi

3 years ago


The Multichain MPC bridge platform is under suspicion of a potential multimillion-dollar exploit due to unusually large outflows. On July 6, it was observed that around $102 million in crypto was withdrawn from Multichain's Fantom bridge on the Ethereum side, along with $666,000 from Dogechain and $5 million from Moonriver. This led to speculations of a possible hack. The withdrawals included 7,214 Wrapped Ether (WETH) tokens worth $13.6 million, 1,024 Wrapped Bitcoin (WBTC) worth $31 million, and $58 million worth of USD Coin from the Fantom bridge's Ethereum smart contract.

The Multichain MPC bridge

Moreover, the Dogechain bridge's Ethereum contract saw a withdrawal of $666,000, which accounted for more than 86% of its total deposits, leaving only around $100,000 worth of assets in the bridge. From the Multichain Moonriver bridge contracts on Ethereum, a total of $5,872,661 worth of USDC and Tether were withdrawn, leaving only around $700,000 remaining on it.

Blockchain security firm PeckShield drew attention to the Fantom bridge transactions, suggesting the Multichain team should investigate. However, it is not confirmed whether the contracts were "drained" or if a large amount of funds were simply withdrawn by users.

Multichain, a multi-party computation (MPC) bridging network, has been experiencing technical issues over the past few weeks. On May 31, the team announced that its CEO had gone missing and it was facing "multiple issues due to unforeseeable circumstances," leading to delayed transactions. On July 5, Binance halted withdrawals of some Multichain derivative tokens due to the network's inability to process transactions promptly.

The Multichain team has acknowledged the abnormal movements and is currently investigating the situation.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

OKX Introduces Shield to Enhance User Security in Europe

OKX has launched a new initiative called OKX Shield aimed at improving exchange security for European users by requiring a hardening checklist for tiered financial protection against account takeovers.

user avatarAisha Farooq

Former Police Officer Charged in Zondacrypto Exchange Collapse

Former police officer Artur K has been charged with multiple offenses related to the collapse of the Zondacrypto exchange, including membership in an organized criminal group and aiding in the misappropriation of funds.

user avatarBayarjavkhlan Ganbaatar

Anchorage Digital Enhances Stablecoin Infrastructure with LayerZero Partnership

Anchorage Digital has partnered with LayerZero to enhance its regulated stablecoin infrastructure, enabling seamless crosschain movement of stablecoins.

user avatarMohamed Farouk

ARK Venture Fund Receives SEC Approval for Innovative Investment Classes

ARK Venture Fund has received SEC approval to create two new investment product classes: Exchange Class and Tokenized Class.

user avatarElias Mukuru

Sui Maintains Over $1 Billion in DeFi Liquidity

Sui continues to hold more than $1 billion in decentralized finance liquidity, with active on-chain trading.

user avatarDiego Alvarez

EigenLayer Surpasses $11 Billion in Total Value Locked

EigenLayer has achieved a significant milestone by moving back above the $11 billion mark in total value locked, indicating strong economic security in the Ethereum restaking sector.

user avatarKenji Takahashi

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.