Investors have lost over $125 million in the Multichain Bridge cryptocurrency theft, researchers say. According to reports, cybercriminals siphoned over $125,000,000 in several tokens.
Multichain bridges, also known as cross-chain crypto bridges, are decentralized applications that facilitate the movement of assets and, in certain instances, diverse information, across various blockchains.
Founded in July 2020 as cross-chain decentralized exchange Anyswap, was recently relaunched as Multichain “with a focus on infrastructure for arbitrary cross-chain interactions”.
“The Multichain service stopped currently, and all bridge transactions will be stuck on the source chains,” tweeted the handle @MultichainOrg.
Multichain Bridge cryptocurrency theft
Researchers who tracked the Multichain Bridge cryptocurrency theft found that hackers initially made smaller transactions before going for bigger sums.
“Multichain had 3 hours to block the exploit as the hacker first did a small transfer using the exploit on Binance chain,” Alon Gal, Co-Founder & CTO at cybercrime intelligence company Hudson Rock posted on social media.
However, Alon stated that the Multichain Bridge cryptocurrency theft was not confirmed by the company.
The incident was tweeted by Peckshield, a leading blockchain security company on June 6, tagging Multichain to draw its attention to the fraudulent transactions.
Details about the transactions were captured in the screenshots posted in the media by Alon –
MetaSleuth, a crypto funds visualization and analysis firm, tweeted that the assets were transferred from Fantom Bridge and Multichain and were distributed across six addresses.
“Additionally, 1.2M ICE (currently worth $1.8M) has been burned from the address ox9d57,” the tweet said.
The following links were shared by Alon to see more details about the Multichain Bridge fraudulent transactions –
The tokens in which the alleged Multichain Bridge theft happened were ETH and BTC among others. It is speculated by researchers that hackers may still be accessing the blockchain to continue the transfer of funds.
“All users are suggested to claim their refund and revoke app approvals to Multichain immediately,” tweeted the @MultichalnOrg handle today.
“A temporary compensation disbursement has been allocated due to the the negative market sediment.”
Multichain Bridge cryptocurrency theft and the missing CEO
“The team has done everything possible to maintain the protocol running, but we are currently unable to contact CEO Zhaojun and obtain the necessary server access for maintenance,” Multichain tweeted on May 31.
The current Multichain bridge theft of $120 million has been linked to the CEO in the media. However, it cannot be said with certainty if there is any connection between the two incidents.
The unavailability of the CEO led Multichain to lose server access for maintenance and other purposes.
“We have swapped all assets out and closed deposits a while back. Regardless, we offer our assistance in helping with the situation,” the CEO of Binance tweeted to its users.
Multichain is considered to be the third largest crypto-sector bridge due to its assets worth over $1.2 billion. However, it’s token MULTI slipped from 17% to $2.59 on Friday.