Circle Protects USDC with $63M Freeze After Multichain Attack

Multichain announced on Twitter that they are investigating an incident and are unsure of the cause. They recommended customers stop using Multichain services and withdraw any platform-related contract approvals.

Multichain, a cross-chain bridge that allows users to transfer tokens between different blockchains, has suspended all bridge transactions on its respective chains. The team did not give a definite date for when services would resume.

In a potential security breach on Multichain, a cross-chain bridge platform, Circle has taken action against three wallet addresses. According to PeckShield, USDC worth around $63 million has been frozen as a result of the incident.

Multichain’s bridge deployments on Fantom, Moonriver, and Dogechain were compromised in a security breach, resulting in the mysterious transfer of $126 million worth of cryptocurrency assets to multiple third-party wallets. At this moment, it is unclear what exactly the breach was and who was responsible for the unknown transactions.

CZ, the CEO of Binance, stated that neither Binance nor its users are impacted by the security flaw on Multichain.
He also said that Binance has swiftly transferred its assets and halted deposits on Multichain as a precautionary measure.

There were rumors in May that the Multichain development team had been detained by the Chinese authorities and that the network’s hardware and cold wallet had been taken over by the Chinese government. Although these claims were never proven, they did create some apprehension among Bitcoin enthusiasts.

I am Vishal. I post articles about the cryptocurrency markets. I'm pursuing a BBA degree. My home is in Navi Mumbai, Maharashtra.I'm constantly interested in new advancements in this industry and I learn something new about it every day. I would love to share such information with you all.

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