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 On July 6, it was observed that around $102 million in crypto was withdrawn from Multichain's Fantom bridge on the Ethereum side, along with $666,000 from Dogechain and $5 million from Moonriver.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 From the Multichain Moonriver bridge contracts on Ethereum, a total of $5,872,661 worth of USDC and Tether were withdrawn, leaving only around $700,000 remaining on it.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 However, it is not confirmed whether the contracts were "drained" or if a large amount of funds were simply withdrawn by users.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

Grayscale Appoints BitGo as Custodian for Hyperliquid Staking ETF

Grayscale has appointed BitGo Bank Trust as an additional custodian for its Hyperliquid Staking ETF to enhance custody services and operational flexibility.

user avatarAndrew Smith

Avalanche Sees Surge in Tokenized US Treasury Assets

The value of tokenized US Treasury assets on the Avalanche network has surged to approximately $545 million, marking a fourfold increase over the past year.

user avatarJacob Williams

Metaplanet Shows Liquidity Management with Strategic Bitcoin Transactions

Metaplanet sold 10,000 BTC for approximately $790 million and bought back 11,000 BTC for around $950 million, demonstrating its ability to manage liquidity effectively.

user avatarSon Min-ho

Navra Secures $19 Million in Series A Funding to Bridge Traditional Finance and Blockchain

Navra, a startup led by Mike Cagney, has successfully raised $19 million in Series A funding to enhance access to blockchain-based financial markets for traditional investors.

user avatarZainab Kamara

Arbitrum Proposes Strategic Initiative for USDG Stablecoin

Arbitrum has proposed a governance initiative to back USDG as a core strategic stablecoin within its ecosystem, including adding 100 million ARB to enhance liquidity and adoption.

user avatarTando Nkube

BitGo and HashKey Cloud Expand Partnership in Asia-Pacific

BitGo and HashKey Cloud have expanded their partnership to cover multiple areas of institutional crypto infrastructure, including staking, trading, custody, and asset tokenization in Singapore.

user avatarAyman Ben Youssef

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.