Is Multichain MPC Bridge at Risk? $100M+ Outflows Raise Concerns of Exploit

There is growing concern in the cryptocurrency community as the Multichain MPC Bridge platform experiences abnormally large outflows, potentially indicating a multi-million dollar exploit. Recent reports show significant withdrawals from Multichain’s Fantom bridge on the Ethereum side, as well as from Dogechain and Moonriver.

On July 6, approximately $102 million worth of cryptocurrency was withdrawn from the Fantom bridge’s Ethereum smart contract. This included 7,214 Wrapped Ether (WETH) tokens ($13.6 million), 1,024 Wrapped Bitcoin (WBTC) ($31 million), and $58 million worth of US Dollar Coin (USDC).

July 6 withdrawals from the Multichain Fantom Bridge contract on Ethereum. Source: Blockchain data

In addition, the Dogechain bridge’s Ethereum contract experienced a withdrawal of $666,000, representing more than 86% of its total deposits. The Multichain Moonriver bridge contracts on Ethereum saw $5,872,661 worth of USDC and Tether (USDT) withdrawn.

The significant outflows have led to speculation among on-chain sleuths that the platform may have been exploited. Peckshield, a blockchain security firm, tagged the Multichain team on Twitter to bring the transactions to their attention. However, it is important to note that it has not been confirmed whether the contracts were truly drained or if users simply withdrew a large amount of funds.

The Multichain team is aware of the abnormal movements and has stated that they are currently investigating the situation. Meanwhile, users are advised to suspend the use of Multichain services and revoke all contract approvals as a precautionary measure.

The Multichain MPC Bridge and its Security Measures

Multichain is a multi-party computation (MPC) bridging network that facilitates the transfer of assets between different blockchains. When a user wants to bridge assets from one chain to another, the Multichain network ensures that the assets are locked on the first chain and then mints derivative assets on the second chain. Conversely, when a withdrawal is made, the network confirms the destruction of derivative coins on the second chain before releasing the assets on the first chain.

To ensure the security of this process, the Multichain team claims that the cryptographic keys controlling the transfer are split into multiple shards and distributed throughout the network. This distributed control should prevent any single individual or group from making unauthorized withdrawals.

Challenges and Technical Issues

In recent weeks, Multichain has faced unspecified technical problems. On May 31, the team announced that their CEO had gone missing, and they were grappling with “multiple issues due to unforeseeable circumstances,” causing delays in transactions. More recently, Binance temporarily halted withdrawals of some Multichain derivative tokens due to the network’s failure to process transactions in a timely manner.

It is crucial for Multichain to address these challenges and implement necessary improvements in their security and technical infrastructure to regain confidence in their platform.

Editor Notes: Concerns of Exploits in the Crypto Space

The recent news surrounding the outflows from the Multichain MPC Bridge platform reflects the ongoing challenges faced by the cryptocurrency industry in terms of security and trust. Incidents like these emphasize the importance of vigilance in safeguarding digital assets and conducting thorough due diligence before utilizing any platform or service.

It is always wise to stay updated with the latest news and developments in the crypto space. To stay informed, visit Uber Crypto News for the latest updates, expert opinions, and insights.

You might also like

Comments are closed, but trackbacks and pingbacks are open.