$100M+ Outflows from Multichain MPC Bridge Spark Fear of Exploit
• Multichain MPC bridge sees large outflows, sparking fears of exploit
• On-chain sleuths detect withdrawals amounting to over $102 million from Multichain’s Fantom bridge on the Ethereum side
• Blockchain security firm PeckShield tags the Multichain team in a post showing the Fantom bridge transactions
Multichain MPC Bridge Experiencing Abnormal Outflows
Abnormally large outflows from the Multichain MPC bridge platform are causing concern for on-chain sleuths and blockchain security firms. On July 6, observers noticed that approximately $102 million worth of crypto had been withdrawn from Multichain’s Fantom bridge on the Ethereum side, as well as $666,000 from Dogechain and $5 million from Moonriver.
Fears of Exploit
On July 6, 7,214 Wrapped Ether (WETH) tokens worth $13.6 million, 1,024 Wrapped Bitcoin (WBTC) worth $31 million and $58 million worth of USD Coin USDC were withdrawn from the Fantom bridge’s Ethereum smart contract — approximately $102 million in cryptocurrency in total. In addition, the Dogechain bridge’s Ethereum contract saw a withdrawal of $666,000 which represented more than 86% of its total deposits leaving only around $100,000 worth of assets remaining in the bridge. A total of $5,872,661 worth of USDC and Tether USDT were withdrawn from the Multichain Moonriver bridge contracts on Ethereum leaving only around 700 thousand dollars remaining on it. This led people to label this event as an exploit.
PeckShield Tags Multichian Team
Blockchain security firm PeckShield tagged the Multichain team in a post showing the Fantom bridge transactions saying “you may want to take a look.” This sparked further speculation about an exploit being underway with one commenter remarking that it looks like “another massive hack.” On-Chain investigator Spreek posted Dogechain transactions with comment “dogechain multichian drained.”
No Confirmation From Cointelegraph
Cointelegraph could not confirm by publication time whether or not these contracts were actually drained or whether funds were simply withdrawn by users. Cointelegraph reached out to the MulitChain team but did not receive response by publication time. Later however MultiChain tweeted that they are doing investigations into these outflows and will provide an update soon. They also mentioned that is always good idea to revoke approvals if you have any towards such bridges.
MultiChain seems to be investigating this abnormal activity on their platform with plans for providing updates soon but until then suspicion still remains about a possible exploit having taken place here