Multichain

Tether USDt

USDC

Wrapped Bitcoin

Fantom (Migrated to Sonic)

<p>In a shocking turn of events, the cross-chain router protocol Multichain fell victim to a massive exploit, with an attacker siphoning off nearly $130 million. The audacious cyber-attack stripped <a href="https://walletinvestor.com/magazinadmin/pantos-releases-multichain-token-creator-enabling-users-to-easily-deploy-tokens-on-multiple-blockchains/">Multichain</a>‘s Fantom bridge of almost its entire holdings, including Wrapped Bitcoin (wBTC), USD Coin (USDC), Tether (<a href="https://coinmarketcap.com/currencies/tether/">USDT</a>), and a medley of altcoins. The magnitude of this exploit and the unusual modus operandi have left the crypto community in a state of high alert.</p> 
<p>&nbsp;</p> 
<h2 style="text-align: center;" id="tether-s-swift-response">Tether’s Swift Response</h2> 
<p>In response to this egregious security breach, Tether, the renowned stablecoin issuer, took decisive action by freezing $2.5 million of USDT tied to the exploit. This swift intervention is a testament to Tether’s commitment to maintaining the integrity of its digital currency and protecting its users from the repercussions of such security breaches.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">Three Multichain addresses (0x027F / 0xefEe / 0x48Be) have been frozen by Circle. These addresses held a total of 65M in assets, including 63.2M USDC, which are now frozen.</p> 
 <p>Previously, a large amount of Multichain’s multi-chain assets of about 125 million U.S. dollars…</p> 
 <p>— Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1677474800166637568?ref_src=twsrc%5Etfw">July 8, 2023</a></p>
</blockquote> 
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<h2 style="text-align: center;" id="anomalies-in-the-attack">Anomalies in the Attack</h2> 
<p>Interestingly, not all tokens in the bridge were exfiltrated, and the assets were not liquidated, a typical aftermath of such attacks. This anomaly has added an extra layer of complexity to the ongoing investigation and has left experts puzzled about the attacker’s motives and strategies.</p> 
<p>&nbsp;</p> 
<h2 style="text-align: center;" id="circle-s-preemptive-measures">Circle’s Preemptive Measures</h2> 
<p>Simultaneously, the Fantom Foundation announced that Circle, another prominent stablecoin issuer, had frozen three Ethereum addresses containing $60 million worth of USDC. This preemptive measure further underscores the crypto industry’s collective efforts to mitigate the impact of the exploit and safeguard users’ assets.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">The Multichain service stopped currently, and all bridge transactions will be stuck on the source chains.</p> 
 <p>There is no confirmed resume time.</p> 
 <p>Please don’t use the Multichain bridging service now.</p> 
 <p>— Multichain (Previously Anyswap) (@MultichainOrg) <a href="https://twitter.com/MultichainOrg/status/1677180114227056641?ref_src=twsrc%5Etfw">July 7, 2023</a></p>
</blockquote> 
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<h2 style="text-align: center;" id="binance-s-assurance">Binance’s Assurance</h2> 
<p>Amidst the turmoil, Binance CEO Changpeng ‘CZ’ Zhao offered a beacon of reassurance to the exchange’s users. He unequivocally stated that the exploit does not impact Binance users, as the exchange had proactively swapped all assets out and closed deposits earlier. Despite being unaffected, Binance has extended its support to help manage the situation, demonstrating solidarity within the crypto community in the face of adversity.</p> 
<p>&nbsp;</p> 
<h2 style="text-align: center;" id="tether-holdings-additional-measures">Tether Holdings’ Additional Measures</h2> 
<p>Furthering the defensive measures, Tether Holdings, the issuer of the USDT stablecoin, froze two addresses on the Ethereum network that had received funds from Multichain’s multi-party computing (MPC) directorate. These addresses, now marked as “suspicious multi-chain addresses” by Ethereum block explorer Etherscan, are under close scrutiny.</p> 
<p>&nbsp;</p> 
<h2 style="text-align: center;" id="conclusion">Conclusion</h2> 
<p>As the crypto industry grapples with this significant security breach, the swift and decisive actions taken by Tether, Circle, and Binance underscore the sector’s resilience and commitment to user protection. While the investigation continues, these developments serve as a stark reminder of the importance of robust security measures in the ever-evolving landscape of cryptocurrency.</p>

Tether Responds to $130 Million Multichain Exploit by Freezing USDT Addresses

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