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Multichain has now warned that because of the exploit, all transactions will be stuck on source chains until further notice.
Open-source cross-chain router protocol Multichain (MULTI) has confirmed that an exploit occurred on its protocol, affecting $130 million worth of tokens. The protocol asked its users to suspend all related transactions for now.
In a recent tweet, Multichain said although it is currently investigating the anomaly, it is not sure exactly what happened. The tweet then warned:
“It is recommended that all users suspend the use of Multichain services and revoke all contract approvals related to Multichain.”
In a subsequent tweet, Multichain said all services have been stopped, and “all bridge transactions will be stuck on the source chains”. The protocol added that there is no “resume time” for restoring the chain or completing its investigation exploit. According to data from CoinMarketCap, MULTI has lost 15% over the last 24 hours and more than 23% in the last 7 days.
Binance CEO Changepeng Zhao responded to Multichain’s announcement in a tweet. Zhao assured users that the Multichain exploit has no bearing on Binance:
“Looks like another hack happened on Multichain. This DOES NOT affect users on Binance or Binance itself. We have swapped all assets out and closed deposits a while back. Regardless, we offer our assistance in helping with the situation.”
MetaSleuth, a crypto visualization and analysis tool by BlockSec, provided more details. According to MetaSleuth, over $120 million worth of assets were moved from Multichain: Moonriver Bridge and Multichain: Fantom Bridge. MetaSleuth added that the funds have been spread across 6 different addresses. The BlockSec tool also stated that the players behind the exploit have burned 1.2 million ICE, worth $1.8 million, from a “0x9d57” address.
Binance Suspended Multichain-Bridge Tokens before Exploit
On Wednesday, July 7, Binance said it would suspend support for withdrawals and deposits of several Multichain-bridged tokens starting today. The delisting follows a previous suspension that stemmed from delays in the Multichain protocol. In May, Binance suspended the tokens as transactions were delayed, and Multichain did not offer much information.
Following the recent suspension announcement, blockchain intelligence firm Arkham Intelligence confirmed that about $3 million in MULTI tokens moved to Gate.io, resulting in a 26.5% crash in the price of MULTI.
Multichain has had a few problems for a while now, including the alleged disappearance of its CEO. In May, the protocol suspended cross-chain routes for several chains, a problem caused by “unforeseeable circumstances.” The tweet explained that fixing the problem was beyond the current permissions and ability of its team members and required input from its CEO. However, Multichain stated that it could not reach CEO Zhaojun to obtain the required permissions. The issue affected 11 chains, including Dyno Chain, PublicMint, Findora, and ONUS.
Several news reports stated that Chinese law enforcement had arrested a few members of Multichain’s team, including the CEO Zhaojun. Rumors also suggested that authorities seized a wallet containing tokens worth more than $1.6 billion. According to Defi Llama, Multichain has $1,262 billion in Total Value Locked (TVL) as of press time.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
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Hong Kong and Shanghai Banking Corporation (HSBC) — the biggest bank in Hong Kong — has reportedly introduced its first local cryptocurrency services.
HSBC has enabled its customers to buy and sell Bitcoin (BTC) and Ether (ETH)-based exchange-traded funds (ETFs), local journalist Colin Wu reported in a tweet on June 26.
According to the report, HSBC will specifically offer cryptocurrency ETFs listed on the Stock Exchange of Hong Kong. At the time of writing, the exchange lists three crypto ETFs, including CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF and Samsung Bitcoin Futures Active ETF.
SCOOP: HSBC, the largest bank in Hong Kong, today allows its customers to buy and sell Bitcoin and Ethereum ETFs listed on the Hong Kong exchange, and is also the first bank in Hong Kong to allow it. The move will expand local users’ exposure to cryptocurrencies in Hong Kong. pic.twitter.com/vH0LieSVGw
— Wu Blockchain (@WuBlockchain) June 26, 2023
The move aims to expand local users’ exposure to cryptocurrencies in Hong Kong. According to online reports, HSBC Hong Kong had 1.7 million active mobile customers as of March 2022. About 95% of all retail transactions of HSBC in Hong Kong are reportedly processed online.
HSBC did not immediately respond to Cointelegraph’s request for comment. This article will be updated pending new information.
Related: Hong Kong legislator invites Coinbase to the region despite SEC scrutiny
The new services come alongside HSBC reportedly launching the Virtual Asset Investor Education Center. The initiative is designed to protect investors from cryptocurrency-related risks, requiring them to read and confirm educational materials and risk disclosures before investing.
The education center is reportedly available on HSBC’s virtual asset-related products like the HSBC HK Easy Invest app, HSB CHK Mobile Banking app and online banking.
The news comes soon after some media reports suggested in mid-June that the Hong Kong Monetary Authority pressured major banks to accept crypto exchanges as clients. The region’s central bank and regulator specifically questioned companies like HSBC and Standard Chartered on why they were not taking any crypto exchanges as clients.
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