Decentralized Finance Multichain Network Suspended After Potential Hack
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Multichain, previously known as Anyswap, has recently taken the drastic step of halting its entire network in response to a suspected hack.
The hack is believed to have resulted in losses of around $130 million. This event comes just a month after the CEO of Multichain mysteriously disappeared, adding to the growing uncertainty surrounding the platform.
Multichain has explicitly advised users to refrain from utilizing their services or engaging in any transactions via Multichain's bridges. The purpose of the Multichain bridge and tokens is to facilitate interoperability and cross-chain functionality. It allows users to transfer value representedn through tokens from one blockchain to another without the need for centralized exchanges or intermediaries.
The suspension of Multichain's services means that all bridge transactions are now stuck on their respective source chains, with no clear indication of when operations will resume.
The suspicious activity was discovered when a significant number of crypto tokens were observed moving from Multichain's bridging networks to an unknown digital currency address.
Notably, blockchain firm PeckShield had previously alerted Multichain to suspicious activity on its Fantom bridge, highlighting significant outflows of crypto tokens amounting to approximately $102 million. The exploited tokens reportedly include wrapped bitcoin (WBTC), stablecoins DAI and USDC, Ethereum (ETH), as well as Chainlink (LINK), contributing to the estimated potential losses of over $130 million.
The Multichain team took to social media to acknowledge the situation, stating that they are currently investigating the incident and emphasizing the importance of suspending the use of Multichain services and revoking any contract approvals associated with the platform.
Furthermore, the Multichain CEO's unexplained absence for over a month has fueled speculation within the industry. There are suggestions that some team members may have been taken into custody by Chinese law enforcement agencies, further deepening the mystery surrounding the situation.
In May, the team had expressed their inability to contact CEO Zhaojun, citing the need for server access for "maintenance," thereby implying that the CEO held exclusive permissions to address the platform's issues, which raises questions about the decentralization claims made by Multichain.
