Investors have reportedly lost over $125 million in a cryptocurrency theft involving Multichain Bridge, according to researchers. The cybercriminals managed to siphon off more than $125 million worth of various tokens through the decentralized application. Multichain bridges, also known as cross-chain crypto bridges, are designed to facilitate the movement of assets and information across different blockchains.
Multichain Bridge, formerly known as Anyswap, was founded in July 2020 as a cross-chain decentralized exchange. Its recent rebranding focused on infrastructure for cross-chain interactions. However, the service is currently stopped, and all bridge transactions are stuck on the source chains, as announced on the @MultichainOrg handle.
Researchers who were tracking the cryptocurrency theft discovered that the hackers started with smaller transactions before targeting larger sums. Alon Gal, Co-Founder & CTO at cybercrime intelligence company Hudson Rock, revealed on social media that Multichain had a three-hour window to block the exploit, but failed to do so. However, the company itself has not confirmed the theft.
The fraudulent transactions on Multichain Bridge were brought to the attention of the company by Peckshield, a notable blockchain security firm. Alon Gal also posted screenshots of the details of the transactions on social media. MetaSleuth, a crypto funds visualization and analysis firm, further highlighted that the assets were transferred from Fantom Bridge and Multichain to six different addresses.
The stolen tokens involved in the theft included ETH and BTC, among others. Researchers speculate that the hackers may still have access to the blockchain and could continue transferring the funds. Therefore, all users are urged to claim their refunds and revoke app approvals to Multichain immediately.
Multichain faced cybersecurity concerns in May when Binance suspended transactions linked to the platform. The company experienced a cyber attack, rendering certain bridge routes inaccessible. Multichain tweeted on May 31 that they were unable to contact CEO Zhaojun and gain necessary server access for maintenance. The missing CEO has led to speculation that he may be connected to the current theft, although no definitive link has been established.
In response to the fraudulent transactions, Binance CEO Changpeng Zhao assured users that their cryptocurrency held on Binance was safe. Binance had already swapped all assets out and closed deposits to ensure the security of users’ funds. Despite these measures, Binance offered assistance in resolving the situation.
Multichain Bridge is one of the largest crypto-sector bridges, with assets worth over $1.2 billion. However, its token MULTI experienced a significant drop from 17% to $2.59 following news of the theft.
Disclaimer: This report is based on internal and external research and should be used for reference purposes only. Users are responsible for their reliance on this information, and The Cyber Express assumes no liability for its accuracy or the consequences of its use.