• Circle and Tether have frozen $65 million in assets related to a suspected exploit of Multichain.
• Multiple ecosystems have been affected by unexplained outflows.
• Multichain has suspended services amid uncertainty.
Circle and Tether Freeze $65M in Assets
Stablecoin issuers Circle and Tether have taken action by freezing more than $65 million in assets related to a suspected exploit of Multichain, a cross-chain router protocol. This decision was made after significant outflows occurred from the Multichain MPC bridge on July 6.
Suspected Exploit Impacts Multiple Ecosystems
The incident involved the withdrawal of over $125 million worth of cryptocurrencies from multiple wallets, impacting various ecosystems including Multichain’s Fantom bridge, Dogechain, Moonriver, Kava, and Conflux. The cause of these abnormal asset transfers remains unclear at this time.
Multichain Halts Services Amid Uncertainty
In response to the situation, Multichain took to Twitter to announce the temporary suspension of its services without specifying when they would resume operations again. They advised users against utilizing their bridging service as all transactions will be stuck on the source chains until further notice.
Investigations Aim To Shed Light On Suspicious Activity
Ongoing investigations aim to shed light on this perplexing situation for better understanding what exactly happened with these funds‘ transfer which does not appear to be an ordinary hack as no further movement was observed from attacker’s wallets after receiving them.
Circle and Tether have taken decisive steps towards protecting user funds by freezing suspicious assets related to an exploit of Multichain protocol. Multiple ecosystems were impacted by unexplained outflows thus causing uncertainty within the community. Investigations are currently underway in order to determine what happened with these abnormal asset transfers while Multichian temporarily suspends their services during this period of uncertainty