Despite CZ’s assistance, Binance will proceed with its decision to end deposit and withdrawal support for several multi-chain bridge tokens.
Changpeng Zhao (CZ), CEO and founder of leading cryptocurrency exchange Binance, has announced that his company’s users, assets, and platform were not affected by the recent hack of cross-chain router protocol Multichain.
Binance boss said on Twitter that the exchange had completed all asset swaps and closed deposits some time before the incident.
Binance is not affected by the multi-chain vulnerability
On July 6, Multichain’s bridge contract saw unusual funds flow to unknown addresses, sparking rumors of a multi-million dollar vulnerability. While the reason for the transfer is unclear, the Multichain team has asked users to revoke all approvals related to their contracts.
On-chain data shared in a tweet by blockchain security firm PeckShield shows several transactions on the multichain Fantom bridge. Approximately $58 million in USD Coin (USDC), $13.6 million in Wrapped Ether (WETH), and $31 million in Wrapped Bitcoin (WBTC) were transferred from the Fantom bridge’s Ethereum contract.
Additionally, approximately $5.9 million and $666,000 were withdrawn from the multichain Moonriver and Dogechain bridge contracts on Ethereum, leaving only $100,000 and $700,000 worth of assets on each bridge.
In total, more than $109 million was transferred from Multichain’s MPC address containing the platform’s locked assets. To mitigate the losses, Multichain also asked all users to stop using its services as the investigation into the incident is ongoing.
The team said, “The locked assets on the Multichain MPC address were abnormally transferred to an unknown address. The team is not sure what happened and is currently investigating. It is recommended that all users suspend the use of Multichain services and revoke all contract approvals related to Multichain.”
Binance stops supporting multi-chain tokens
Although CZ has offered to help resolve the issue, Binance has still decided to end deposit and withdrawal support for several multi-chain bridge tokens.
The company disclosed its decision to stop supporting Multichain bridge tokens on July 5 following complaints of delays in trading on the protocol. The exchange initially suspended deposits of the affected tokens in May due to uncertainty surrounding the Multichain protocol.
Rumors circulated that the protocol’s management team had been arrested in Shanghai following the disappearance of its CEO. While the speculation has yet to be confirmed, multichain developers revealed that the CEO’s disappearance prevented them from accessing the platform’s servers, thus delaying transactions.
