On July 6, users of the cross-chain protocol Multichain were alerted about an unexpected transfer of lockup assets from the Multichain MPC address to an unidentified address. The Multichain team has advised users to cease using the cross-chain protocol. Meanwhile, Binance CEO Changpeng Zhao (CZ) has reassured his followers that this event will not impact Binance users or the exchange itself.

Users Advised to Cancel All Multichain-Related Contract Approvals

Following the unexplained disappearance of Multichain CEO, known as Zhaojun, which sent shockwaves through the crypto sphere just over a month ago, users were notified about an unexpected transfer of lockup assets to an unidentified address on July 6. The Multichain team, who announced this via their official Twitter account, confessed that they are unsure about what transpired and are currently investigating the incident.

As CryptokenTop.com News noted on June 3, in Zhaojun’s absence, issues with the router technology used by the cross-chain protocol led to interruptions in regular cross-chain services. The team acknowledged that multiple chains, including Kekchain, Publicmint, Dyno Chain, Red Light Chain, Dexit, Ekta, HPB, ONUS, Omax, Findora, and Planq, were affected. Despite speculations that Zhaojun had been detained in China, the team did not instruct users to halt using the protocol.

Nevertheless, over a month after Multichain’s issues surfaced, the team has now instructed users to cease using the protocol.

“All users are advised to stop using Multichain services and cancel all contract approvals associated with Multichain,” the team stated.

In response to Multichain’s post, Binance CEO Changpeng Zhao (CZ) reassured his followers that the alleged “hacking” incident won’t affect Binance users or the exchange. He added:

“We previously swapped all assets out and closed deposits. Regardless, we extend our help to assist with the situation.”

‘Perpetrator May Not Be a Hacker’

While CZ refers to the transfer of lockup assets on the Multichain MPC address as hacking, a Twitter user named Oxloki posited that the perpetrator may not be a hacker.

Oxloki stated, “Given enough time and considering MPC’s technical features, the person who made the transfer may have fully gained control of the private key shards exceeding the threshold. The ‘attack method’ is very straightforward, a simple transfer operation without a contract. Additionally, there was a test, indicating the perpetrator is likely not a hacker.”

In another Twitter announcement, the blockchain-based liquidity hub, Kyber Network, advised users to “cancel all permissions and avoid using any Multichain service.” The team is currently working on “disabling the bridge function on our UI,” according to the announcement.

DIP Exchange, a decentralized exchange platform, commented that while the recent incident on Multichain might slow down operations, it would not deter them from continuing to develop.

What’s your take on this story? Please share your thoughts in the comments section below.

Frequently Asked Questions (FAQs) about Multichain abnormal transfer

Q: What is the Multichain protocol?

A: The Multichain protocol is a cross-chain protocol that allows for the transfer of assets between different blockchain networks.

Q: What happened on July 6 regarding Multichain?

A: On July 6, Multichain users were informed about an abnormal transfer of lockup assets from the Multichain MPC address to an unknown address.

Q: Should Multichain users continue using the protocol?

A: No, the Multichain team has advised users to stop using Multichain services and revoke all contract approvals related to Multichain.

Q: Will this incident affect Binance users or the exchange itself?

A: According to Binance CEO Changpeng Zhao (CZ), this incident does not impact Binance users or the exchange. Binance has taken measures to protect its assets and is willing to assist with the situation.

Q: Is the perpetrator of the asset transfer considered a hacker?

A: According to a Twitter user’s analysis, the transferor may not be a hacker but rather someone who gained control of private key shards exceeding the threshold.

Q: How are other platforms and exchanges responding to this incident?

A: Kyber Network has urged users to revoke permissions and not use any Multichain service, while DIP Exchange remains committed to its development despite potential slowdown caused by the incident.

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5 comments

CryptoLover89 July 8, 2023 - 12:32 am

wow, what a crazy story. multichain users got informed bout some weird transfer of assets to unknwn addrss. stop usin it now!!! binance says no worries tho, they r ok. hope they catch the hcker soon!

Reply
CryptoEnthusiast123 July 8, 2023 - 2:22 am

Can’t believe this is happening to Multichain. They were supposed to be secure and reliable. But hey, Binance seems unaffected, so maybe it’s not that bad. Stay safe out there, folks!

Reply
BlockchainFanatic July 8, 2023 - 3:12 am

omg, Multichain in trouble again? 1st their CEO goes missing, now assets r being transferred to who knows where. This is a mess! Hope it doesn’t affect other platforms.

Reply
BitcoinMaster55 July 8, 2023 - 12:37 pm

Whoa, hold on! Multichain got hacked or what? Someone’s moving assets to an unknown addy? This is bad news, man. Time to stop using it and protect our funds. Be careful, everyone!

Reply
EthereumGuru July 8, 2023 - 8:00 pm

Multichain needs to get their act together. First, their CEO disappears, and now they can’t even secure their assets properly. It’s a shame. Let’s hope they find out what happened and fix it ASAP.

Reply

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