$65M in assets transferred from Multichain frozen by Circle Tether.

Circle and Tether, two stablecoin issuers, have frozen more than $65 million in assets related to a suspected exploit of the cross-chain router protocol Multichain. This action comes after large outflows from the Multichain MPC bridge were observed on July 6.

According to the knowledge graph protocol 0xScope, three addresses that received at least $63.2 million in USD Coin (USDC) from Multichain have now been frozen. Another report from the Fantom Foundation mentions that over $2.5 million in Tether (USDT) has also been frozen from two addresses identified as “Multichain Suspicious Addresses” by Etherscan.

On July 6, over $125 million worth of cryptocurrencies were withdrawn from multiple wallets, affecting the Fantom bridge of Multichain, as well as the ecosystems of Dogechain, Moonriver, Kava, and Conflux. The cause of this abnormal transfer of assets remains unclear.

Update: Tether has frozen these accounts with over 2.5 million USDT on Ethereum transferred from Multichain: [link] [link] Thank you Tether and the team for your quick response.

— Fantom Foundation (@FantomFDN) July 8, 2023

On Twitter, Multichain announced the suspension of its current services without specifying a return date. It warned users not to use the Multichain bridging service at the moment, stating that all bridge transactions would be stuck on the source chains.

According to Fantom protocol CEO Michael Kong, the funds transfer “does not appear to be a normal hack” because the assets sent to the alleged attacker’s wallets were not further transferred. Investigations are still ongoing.

Multichain enables users to transfer tokens between different networks. It has been facing technical and operational challenges since its leadership disappeared a few weeks ago. Bridges like Multichain are particularly vulnerable targets for crypto hackers, with several incidents reported in 2022.

A recent report by blockchain security firm SlowMist revealed that since 2012, over $30 billion in crypto assets has been hacked in hundreds of incidents. The top five most common hacks include smart contract vulnerabilities, rug pulls, flash loan attacks, scams, and private key leaks.

The total number of incidents includes 118 exchange hacks, 217 Ethereum ecosystem hacks, 162 BNB Smart Chain ecosystem hacks, 119 EOS ecosystem hacks, and 85 hacks involving nonfungible tokens. Over the past decade, a total of over $10 billion has been lost in crypto exchange hacks.

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