Multichain Protocol Halts After $126 Million Hack: What Users Need to Know

Multichain’s $126 million exploit raises concerns about security and user safety in the decentralized finance landscape.

Multichain Protocol is getting hacked.
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  • Abnormal fund movements have halted Multichain.
  • Users of Multichain’s protocol have been urged to revoke all approvals associated with the platform.
  • The exploit has sparked a thorough evaluation by the Fantom Foundation.

The cross-chain protocol Multichain (MULTI) has come to an abrupt halt after detecting abnormal fund movements from its MPC address. The exploit, amounting to a staggering $126 million, has sent shockwaves through the blockchain community. 

This breach has not only raised concerns about the security of Multichain but also prompted users to question their safety in the ever-evolving landscape of decentralized finance.

What Is the Hack?

The exploit, reported by blockchain security firm Peckshield, involved the attacker transferring $126 million from Multichain’s Fantom (FTM) and Moonriver (MOVR) bridge. The exploit has resulted in a significant decline in the value of its MULTI token, which fell by over 16% to $2.60 following the attack.

Who Does this Affect?

The hack affects users of Multichain’s protocol. Multichain has advised its users to revoke all approvals associated with the protocol. Fantom Foundation is evaluating the circumstances and will provide updates as they become available.

What should I Do?

If you are a user of Multichain, it is crucial to follow the advice provided by the protocol and revoke all approvals related to it. Stay updated on the developments shared by Fantom Foundation regarding the incident. Take necessary precautions to safeguard your funds and consider this exploit’s impact on your holdings and investments.

On the Flipside

  • Multichain’s prompt response in advising its users to revoke all approvals associated with the protocol demonstrates its commitment to addressing the issue and minimizing the potential damage caused by the exploit.
  • The incident serves as a reminder to users of decentralized finance protocols to remain vigilant and take necessary precautions, such as practicing good security hygiene.

Why This Matters

The exploit and subsequent halt of Multichain’s cross-chain protocol are a stark reminder of the persistent security challenges decentralized finance faces. With a staggering $126 million at stake, this incident highlights the critical need for enhanced security measures and vigilance within the crypto ecosystem.

To learn more about protecting yourself from spear phishing attacks and the recent incident where a Coinbase user lost $4.2 million, read here: 

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Coinbase User Loses $4.2M to “Spear Phishing:” How to Spot It

To delve into the integration of Tether (USDT) and its transformative impact on the DeFi space, particularly in relation to Cosmos, read here:

How Tether’s USDT Promises to Transform DeFi with Cosmos Integration

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

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Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.