Multichain, which facilitates transactions across chains, was hit by unauthorized withdrawals of $130,000,000 last week. This led to its suspension.
The protocol recommended that users revoke any contract approvals in response to unusual outflows.
Descripting an exploit as “one of the biggest crypto hacks on record,” In a report published on Monday, Chainalysis suggested that this incident may have been the result of a sabotage.
It added that hackers are increasingly interested in cross-chain protocols, such as Multichain, due to both their innovative nature and the large amounts of assets they manage.
This suspected hack affected USDC, DAI, LINK, USDC wrapped ether and wrapped Bitcoin (wBTC).
According to the report, it is thought that an attacker took control of Multichain’s Multi-Party Calculation (MPC), keys responsible for performing transactions. It is noteworthy that the attacker didn’t swap centrally controlled assets, like USDC. According to the report, these can be frozen.
Circle and Tether have frozen specific addresses which contained assets worth over 65 million dollars transferred from Multichain.
Subsequently on Monday activity revealed that Multichain’s executor was depleting different anyToken address across multiple chains, and then transferring assets to another externally owned addresses.
Multichain did not respond to numerous requests for comments. Multichain’s most recent statement was made on 7th July, stating there is no timetable for the return of services.
Multichain faced other problems, including technical difficulties and stuck transactions, before the attack.
Multichain’s Zhaojun, CEO of Multichain has been reported missing by Chinese officials for more than a month. Other team members may have also been held.
According to the protocol, the CEO has the sole authority for maintaining servers.
Chainalysis has noted that rumors have circulated about the CEO being arrested and $1.5 billion taken from smart contracts’ funds. This led to multiple chains suspending their services.
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