Multichain protocol, the embattled multi-asset infrastructure designed for arbitrary cross-chain interactions, is witnessing a series of outflows that indicate a potential exploit in progress.
Recent data from Arkham Intelligence reveals that the protocol has experienced asset movements totaling up to $125 million as users shift their holdings to various chains. Notably, the Fantom Bridge alone has seen a substantial departure of 122 million assets.
Halt In Multichain Bridge To Counter Unknown Actors
In an attempt to mitigate the damage caused by unidentified actors, the Multichain Bridge has been temporarily suspended. This measure has become increasingly common for the protocol. The Multichain team has commenced an investigation into the incident, acknowledging that the assets locked up in the Multichain MPC address have been abnormally transferred to an unknown address.
In addition to suspending the chain to discourage further movement of funds, the Multichain team has advised users to revoke all contract addresses associated with the protocol as a proactive preventive measure. An interesting consequence of these exploits is the ability for users to swap or transfer assets across the bridge at a significant discount. The affected chains are Fantom, Moonriver, Kava, Dogechain, Conflux, and ETHW.
Multichain finds itself in an exceedingly fragile state as suspicious activities within the protocol become alarmingly common, causing unrest among users and investors alike. This recent exploit is just one of several incidents that have disrupted the protocol’s operations.
The protocol had previously faced concerns of being rug pulled back in May when some chain transactions became inoperable due to a force majeure event. Despite the subsequent price crash of the MULTI token, the protocol managed to resume active operations, only to be derailed once again by the current circumstances.
Impact On The Native Token
As is often the case, the native token has borne the brunt of the exploit’s consequences. At the time of writing, the MULTI token has suffered a significant decline of 15.38%, dropping to $2.62.
The multichain protocol continues to face challenges as exploit activities persist, raising serious questions about its long-term viability and stability. Investors and users eagerly await updates from the team regarding the ongoing investigation and measures to restore confidence in the protocol’s security.