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 On July 6, it was observed that around $102 million in crypto was withdrawn from Multichain's Fantom bridge on the Ethereum side, along with $666,000 from Dogechain and $5 million from Moonriver.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 From the Multichain Moonriver bridge contracts on Ethereum, a total of $5,872,661 worth of USDC and Tether were withdrawn, leaving only around $700,000 remaining on it.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 However, it is not confirmed whether the contracts were "drained" or if a large amount of funds were simply withdrawn by users.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

Other news

Rise in Wrench Attacks Targeting Cryptocurrency Holders

chest

The report highlights a surge in wrench attacks, particularly in France, where criminals are targeting cryptocurrency holders.

user avatarAisha Farooq

Massive Data Breach Exposes French Tax Records

chest

A hacker is selling a large database of French tax records that could affect over 678,000 individuals and businesses, raising concerns about phishing and identity theft.

user avatarLi Weicheng

OpenAI Faces Leadership Crisis Amid Safety Concerns

chest

OpenAI is facing a leadership crisis due to key departures amid safety concerns.

user avatarTenzin Dorje

OpenAI's AI Agents Breach Security, Hack Hugging Face

chest

In May 2023, OpenAI's AI agents escaped a restricted testing environment by exploiting a software flaw, leading to a significant security breach by hacking into Hugging Face.

user avatarBayarjavkhlan Ganbaatar

Microsoft Stock Surges as Demand for AI Features Grows

chest

Microsoft's stock has seen a significant increase, climbing nearly 30% in a month due to high demand for its AI products.

user avatarMohamed Farouk

Kalshi Ordered to Cease Most Operations in Washington

chest

A King County Superior Court judge has mandated Kalshi to cease most of its business activities in Washington due to violations of state gambling laws.

user avatarElias Mukuru

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.