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Circle Freezes $63 Million After Multichain Hack

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After detecting significant token traffic from Multichain Bridging Networks to an undisclosed address, the platform has temporarily suspended its services.

Investigators inside the chain had previously speculated about a possible multimillion-dollar exploit because they observed cryptocurrency withdrawals from the multichain account network.

The reason is still unknown

On Thursday, Multichain Twitter took To announce that an investigation into the accident has been conducted and to express uncertainty about the cause. They advise all users to stop using Multichain Services and to revoke any contract approvals associated with the platform.

Formerly known as Anyswap, Multichain enables users to transfer their cryptocurrency assets across various blockchain networks. The team further stated that all bridge transactions will remain pending in their respective chains, without providing a specific timeline for the resumption of services.

In a recent development, Circle, the issuer of USDC (USD Coin), has taken action against three wallet addresses that were involved in a potential security breach on the Multichain bridge platform. After the incident, the security company PeckShield mentioned Approximately US$63 million has been frozen.

The security breach led to the mysterious transfer of $126 million worth of cryptocurrency assets from Multichain bridge deployments on Fantom, Moonriver, and Dogechain to multiple third-party wallets. The exact nature of the breach and the identities behind the suspicious transactions remain unknown at this time.

SAFU maintenance

Changpeng Zhao, who is often referred to as CZ, was quick to take to Twitter to stress that the event did not affect Binance users or Binance itself. As a precaution, the CEO assures users that assets have been moved quickly and deposits stopped earlier.

This is not the first time that Multichain has made headlines this year. At the end of May, rumors circulated within the Chinese cryptocurrency community that the Multichain Network development team had been arrested by the police. In addition, there are rumors that Chinese authorities may have taken control of network hardware and cold wallets, although these claims have not been confirmed.

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