Massive Token Movements Raise Security Questions on Multichain Bridge
Millions of dollars worth of tokens have been withdrawn from the Multichain bridge on the Fantom network, raising concerns about a potential security breach.
The tokens include USDC, wrapped bitcoin, wrapped ether, DAI, Chainlink, Curve DAO, YFI, Wootrade Network, and a significant portion of UniDex’s total supply. Funds have also been moving on Multichain’s Moonriver bridge, along with a transfer of funds in Dogecoin-based blockchain Dogechain.
Hi @MultichainOrg you may want to take a look: https://t.co/D4GKGpuBtw pic.twitter.com/3qURqGmes8
— PeckShield Inc. (@peckshield) July 6, 2023
No funds have been transferred beyond the initial destination wallets, and they have not been sold or moved to a crypto-mixing service. Multichain has not issued a statement regarding the fund movements, while the Fantom Foundation is actively assessing the situation.
Initial analysis suggested a connection between this incident and LayerZero, a cross-chain platform that recently added support for some of the tokens involved. However, LayerZero’s CEO confirmed that the issue is unrelated to their platform.
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One hypothesis is that users may be withdrawing assets from Multichain bridge to transfer them to LayerZero. Alternatively, it is possible that someone with control over the bridge is responsible, as funds were not burned on the Fantom side during the transactions.
A wallet that received significant USDC was involved in a transaction from the old Binance Smart Chain bridge shortly before. The Multichain bridge relies on a multi-party computation mechanism involving 21 nodes, some of which are required to authorize and sign transactions.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
