Binance CEO Reassures Users Following Multichain Hack, Ends Support for Affected Tokens

  • Binance CEO assures users that their assets are secure despite the Multichain hack, while ending support for Multichain-bridged tokens.
  • Multichain experiences a major exploit, resulting in the transfer of millions of dollars and prompting investigations and precautionary measures.

In a reassuring message to its users, Binance CEO Changpeng Zhao (CZ) stated that the recent hack on Multichain, a cross-chain router protocol, did not affect the assets or platform of the leading crypto exchange. CZ took to Twitter to confirm that all asset swaps had been finalized and deposits closed well before the incident took place.

The Multichain Exploit Raises Concerns

On July 6, Multichain experienced unusual outflows from its bridge contracts, with funds being transferred to an unknown address. This sparked rumors of a potential multimillion-dollar exploit. To address the situation, the Multichain team urged users to revoke all approvals related to its contracts.

Blockchain security firm PeckShield shared on-chain data through a tweet, revealing multiple transactions on the Multichain Fantom bridge. An estimated $58 million in USD Coin (USDC), $13.6 million in wrapped Ether (WETH), and $31 million in wrapped bitcoins (WBTC) were moved from the Fantom bridge’s Ethereum contract.

Additionally, approximately $5.9 million and $666,000 were withdrawn from the Multichain Moonriver and Dogechain bridge contracts on Ethereum, respectively, leaving minimal remaining assets on each bridge. Overall, more than $109 million were transferred from Multichain’s MPC address, which housed the platform’s lockup assets. In response, Multichain urged all users to refrain from using its services as an investigation into the incident unfolds.

Binance Extends Assistance but Ceases Support for Multichain Tokens

Despite CZ offering assistance in addressing the situation, Binance has decided to continue its plan to terminate deposit and withdrawal support for several Multichain-bridged tokens.

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The exchange had already announced the suspension of support for these tokens on July 5, following complaints about delayed transactions on the Multichain protocol. Binance had initially halted deposits for the affected tokens back in May due to uncertainties surrounding the Multichain protocol.

Reports have circulated regarding the possible arrest of Multichain’s management team in Shanghai after the CEO went missing. However, these speculations remain unconfirmed. Multichain developers have disclosed that the CEO’s absence has left them without access to the platform’s servers, leading to transaction delays.

Final Takeaway

While Multichain’s recent hack raised concerns within the cryptocurrency community, Binance users can breathe a sigh of relief knowing that their assets remain secure. Despite the assistance offered by CEO CZ, the Binance exchange will continue its decision to terminate support for several Multichain-bridged tokens, citing earlier concerns regarding the protocol. The investigation into the Multichain exploit is ongoing, leaving users and the broader crypto industry awaiting further updates.

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