Multichain developers have recently acknowledged a security breach that affected a significant amount of user-provided tokens, valued at around $130 million. They posted a series of tweets on Friday, warning users to be careful and avoid using their services for now.
According to the twitter post, the Multichain developers are currently investigating the incident and actively working to fix the problem.
To ensure the safety of users’ assets, the developers strongly advise all users to temporarily stop using Multichain services and cancel any contract approvals associated with the platform. Also added that, “The Multichain service stopped currently, and all bridge transactions will be stuck on the source chains. There is no confirmed resume time.”
After the security breach, the value of Multichain’s MULTI tokens has gone down by 15.5% in the last 24-hours. Currently, according to CoinMarketCap, the token price is trading at $2.65 mark.
Bridges, such as the one provided by Multichain, are important for the crypto world as they allow users to transfer tokens across different networks. However, these bridges are also vulnerable to security breaches. A Recent report from DefiLama shows that exploits involving bridges have led to losses of about $2.66 billion.
Late on Thursday night, Multichain experienced a significant problem where they lost almost $130 million worth of different tokens. This happened on their bridges connected to the blockchain network such as Fantom, Moonriver, and Dogecoin.
An analytics firm called Lookonchain checked the blockchain data and found that the stolen tokens were mainly around $62 million worth of USD coins (USDC), $31 million in wrapped bitcoin (BTC), and $13 million in wrapped ether (wETH).
As of Friday, the stolen tokens have not been seen being moved to exchanges or passed through mixing services like Tornado Cash.
In the last day, the tokens that are connected to this incident have also dropped in value, along with a general decline in the overall market.
In the meantime, Fantom (FTM) experienced a significant decrease of 11.8% in its value. According to CoinMarketCap, the value of Moonriver’s MOVR token also went down by 13.2%, while the lesser-known Dogechain (DC) tokens dropped by 10%.
Developers of Dogechain have assured users that their network was not directly affected by the exploit. However, they have recommended that users take precautionary measures by revoking permissions to Multichain’s Dogechain bridge.
Also read: Binance Suspends Multichain Tokens Deposits and Withdrawals
