{"id":340734,"date":"2023-07-07T10:37:59","date_gmt":"2023-07-07T09:37:59","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=340734"},"modified":"2023-07-07T10:37:59","modified_gmt":"2023-07-07T09:37:59","slug":"multichain-halts-services-after-126m-exploit","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/multichain-halts-services-after-126m-exploit\/","title":{"rendered":"Multichain halts services after $126M exploit"},"content":{"rendered":"<p>Cross-chain protocol Multichain (<a href=\"https:\/\/cryptoslate.com\/coins\/multichain\/\">MULTI<\/a>) <a href=\"https:\/\/twitter.com\/MultichainOrg\/status\/1677096839731097600?s=20\">stopped<\/a> services today after confirming the abnormal movements of funds from its MPC address.<\/p>\n<p>Blockchain security firm Peckshield <a href=\"https:\/\/twitter.com\/PeckShieldAlert\/status\/1677124413274353664?s=20\">reported<\/a> that Multichain was exploited for $126 million, with the attacker moving funds from its \u00a0Fantom (<a href=\"https:\/\/cryptoslate.com\/coins\/fantom\/\">FTM<\/a>) and Moonriver (<a href=\"https:\/\/cryptoslate.com\/coins\/moonriver\/\">MOVR<\/a>) bridge.<\/p>\n<figure id=\"attachment_340751\" aria-describedby=\"caption-attachment-340751\" style=\"width: 900px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-340751\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/F0ZXvHraEAEn4Ns.jpg\" alt=\"Multichain exploit\" width=\"900\" height=\"779\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/F0ZXvHraEAEn4Ns.jpg 900w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/F0ZXvHraEAEn4Ns-300x260.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/F0ZXvHraEAEn4Ns-768x665.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><figcaption id=\"caption-attachment-340751\" class=\"wp-caption-text\">Source: Peckshield<\/figcaption><\/figure>\n<p>Following the incident, Multichain advised users to revoke all approvals related to the protocol. Fantom Foundation <a href=\"https:\/\/twitter.com\/FantomFDN\/status\/1677055684716683264?s=20\">said<\/a> it was &#8220;evaluating the circumstances and will provide an update as soon as we have more to share.&#8221;<\/p>\n<h2>Multichain exploit<\/h2>\n<p>Even though Multichain has not yet released the details of the exploit, initial reactions from the community suggest a possible compromise of the protocol's private key.<\/p>\n<p>Its smart contract auditor, CertiK, <a href=\"https:\/\/twitter.com\/CertiKAlert\/status\/1677112316880384005?s=20\">tied<\/a> the attack to a private key compromise, adding that this was outside the scope of its earlier audit.<\/p>\n<p>On-chain sleuth Loki Zeng <a href=\"https:\/\/twitter.com\/Loki_Zeng\/status\/1677140750818238465\">corroborated<\/a> this view, noting that the asset transfer lasted for a long time. Zeng added that the attacker might have somehow obtained complete control of the protocol's private key fragments exceeding the threshold.<\/p>\n<p>Web3 Knowledge Graph Protocol 0xScope <a href=\"https:\/\/twitter.com\/ScopeProtocol\/status\/1677190884851613696?s=20\">stated<\/a> that the impact of the exploit extends to other chains like Kava, Dogechain, Conflux, and ETHW. The firm added that multiple stablecoin assets across these chains have depegged.<\/p>\n<figure id=\"attachment_340752\" aria-describedby=\"caption-attachment-340752\" style=\"width: 2560px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-340752\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/F0aRYIAakAAP6r1-scaled.jpg\" alt=\"Multichain Exploit\" width=\"2560\" height=\"1234\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/F0aRYIAakAAP6r1-scaled.jpg 2560w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/F0aRYIAakAAP6r1-300x145.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/F0aRYIAakAAP6r1-1024x494.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/F0aRYIAakAAP6r1-768x370.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/F0aRYIAakAAP6r1-1536x741.jpg 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/F0aRYIAakAAP6r1-2048x988.jpg 2048w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><figcaption id=\"caption-attachment-340752\" class=\"wp-caption-text\">Source: 0xScope<\/figcaption><\/figure>\n<p>Meanwhile, Daniele Sestagalli of the ICE crypto project <a href=\"https:\/\/twitter.com\/danielesesta\/status\/1677050867881582593\">stated<\/a> that the team has decided to burn $1.85 million worth of ICE tokens impacted by the exploit. He added that the burned tokens would be airdropped to Fantom Multichain users as a new token, WAGMI.<\/p>\n<h2>Multi down 16%<\/h2>\n<p>Multichain's MULTI token fell by over 16% after the attack to $<span class=\"holepunch holepunch-coin_price_usd\">2.60 at the time of writing, according to <em>CryptoSlate's<\/em> data.<\/span><\/p>\n<p>The exploit has further exacerbated the protocol's issues as it has faced several challenges recently.<\/p>\n<p>In May, amid rumors of CEO Zhao Jun's arrest in China, the Multichain team <a href=\"https:\/\/cryptoslate.com\/multichain-unable-to-contact-ceo-has-no-access-to-project-servers\/\">lost contact<\/a> with him. Coincidentally, the protocol faced a <a href=\"https:\/\/cryptoslate.com\/whales-offload-multichain-as-network-suffers-delayed-transactions\/\">botched upgrade<\/a> of its cross-chain bridge during the same period, with the team attributing the unavailable routes to a &#8220;force majeure&#8221; situation.<\/p>\n<p>Amid the recent challenges, Binance <a href=\"https:\/\/cryptoslate.com\/binance-suspends-support-for-eight-multichain-bridged-tokens-amid-cross-chain-issues\/\">suspended<\/a> support for eight bridged tokens from the cross-chain protocol earlier this week until further notice.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cross-chain protocol Multichain (MULTI) stopped services today after confirming the abnormal movements of funds from its MPC address. Blockchain security firm Peckshield reported that Multichain was exploited for $126 million, with the attacker moving funds from its \u00a0Fantom (FTM) and Moonriver (MOVR) bridge. Following the incident, Multichain advised users to revoke all approvals related to [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":340768,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46940,16041],"tags":[78674,78563],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Multichain halts services after $126M exploit<\/title>\n<meta name=\"description\" content=\"Cross-chain protocol Multichain confirmed today that funds in its MPC addresses were involved in an &quot;abnormal&quot; transaction.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/multichain-halts-services-after-126m-exploit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Multichain halts services after $126M exploit\" \/>\n<meta property=\"og:description\" content=\"Cross-chain protocol Multichain confirmed today that funds in its MPC addresses were involved in an &quot;abnormal&quot; transaction.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/multichain-halts-services-after-126m-exploit\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-07T09:37:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/hacking.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/multichain-halts-services-after-126m-exploit\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/multichain-halts-services-after-126m-exploit\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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