Multichain crypto project suspended due to $120 million hack

Multichain crypto project suspended due to $120 million hack

Author: Robert Strickland (crypto-journalist)

Multichain crypto project suspended due to $120 million hack
Multichain Cryptoproject has suspended its work due to a possible hack and $120 million in asset outflow
While the company has not determined the cause of the incident, an investigation is underway

Multichain, the crypto service used to move tokens between blockchains, has experienced an unexplained outflow of more than $120 million in assets, according to digital asset security specialist BlockSec.

Multichain is one of the so-called cryptocurrency bridges. Such services work on software smart contracts, allowing the conversion of crypto-assets from incompatible ecosystems (tokens of one blockchain to tokens of another) without intermediaries. According to analytics service DefiLlama, the dollar equivalent of total value locked (TVL) in Multichain is $1.25 billion.


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Multichain representatives, for their part, noted on Twitter (the social network is blocked in Russia) that the assets were "abnormally moved to an unknown address" and added that "the team is not sure what happened and an investigation is underway."

Block Sec later clarified that the tokens have now been distributed to six cryptocurrency wallets, but did not give a reason for the incident.

This week, the U.S. Department of Homeland Security (DHS) returned funds to Bitfinex, a bitcoin exchange, that had been confiscated as part of an investigation into a 2016 hack of the site. As a result of the hack, the exchange lost nearly 120,000 BTC ($71.8 million at the rate at the time, more than $3 billion at the current price) in 2016. It has now returned 6,917 BCH ($1949.9 at the exchange rate at the time of writing) and $312,219.7.

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