Encrypted KOL

Encrypted KOL「BTCdayu」The post stated that I cross-chained more than 40 ETH assets through Multichain two weeks ago, but they have not been credited to the account yet, and there is no historical record; but if I use 0.1 ETH for testing, the account will be credited soon, and I judge that there may be a problem with Multichain.

This evening, BitKeep Wallet officially tweeted that due to the abnormal delay of Multichain cross-chain reported by many users, in order to protect the security of user assets, support for Multichain cross-chain channels has been suspended.

In response to the delay in the arrival of cross-chain funds, Multichain officials responded in the community that the upgrade of back-end nodes took longer than expected, and most routes are working as usual because some routes (Kava, zkSync, Polygon zkEVM) Temporarily suspended, all affected transactions will arrive after the upgrade is complete. Multichain announced yesterday that it will upgrade the contract and it will be completed within 24 hours.

However, the official customer service is unclear about the specific arrival time, which also makes users very nervous. From the perspective of the secondary market, some investors began to gradually sell the Multichain token MULTI (Note: MULTI currently has no futures contracts and leverage, and cannot be shorted).

According to 0xScope monitoring, an address starting with 0xb4df related to @MultichainOrgteam transferred 494,200 MULTI (worth $3.17 million) to Gate.io three hours ago; Hashkey deposited 43,928 MULTI (worth $247,000) to #Gateio . The continuous selling pressure caused the price of MULTI to continue to fall, once falling below $5, and the price fell by more than 35% in the past 48 hours.

In addition, affected by the Multichain incident, the price of Fantom (FTM) also fell sharply today, with an intraday drop of 9%. Multichain is the most important cross-chain bridge protocol on the Fantom chain. On-chain data shows that Multichain has currently issued 19.42 million anyUSDC in Fantom. According to Lookonchain monitoring, the Fantom Foundation address also withdrew the liquidity of 449,740 MULTI (worth about $2.4 million) from SushiSwap.

As the largest cross-chain bridge, Multichain currently has a lock-up volume of 1.6 billion U.S. dollars (about 1.8 billion U.S. dollars before the evening news spread). At present, the panic in the encryption community is spreading, and various rumors are flying everywhere.

However, some KOLs have demonstrated that there is no problem with Multichain from the perspective of on-chain data analysis.「0xGene」image description

（Multichain networkrun screenshot)

In addition, most of the statements circulating in the community are sensational but illogical. Except for the fact that there is a delay in the arrival of users’ cross-chain assets, other things cannot be verified. It is irrational to fabricate stories to create panic. The funds of the cross-chain bridge are not centralized, and it is impossible to withdraw them at will, and the funds on the chain cannot be used by the team at will.

Therefore, Odaily reminds users not to FUD blindly, but for safety reasons, the previous contract authorization can be canceled. We will also continue to follow up and report, hoping that the incident can be properly resolved.

Update on May 25th:

Multichain tweeted that although most of the cross-chain routes of the Multichain protocol are operating normally, due to force majeure, some cross-chain routes cannot be used, and the time to restore services is unknown. After service is restored, pending transactions will be credited automatically. Multichain will compensate users affected during this process, and the compensation plan will be announced later.

Alfred Xu, the co-founder of Multichain, said in the official Telegram community that the current team is healthy, the main business is normal, the route will be restored automatically, and the team is working normally.

DJ Qian, founder of the Fusion Foundation and former co-founder of Multichain, said on Twitter that he has not yet contacted Zhao Jun, the co-founder and CEO of Multichain.

BinanceBinanceSaid that while waiting for a clear explanation from the Multichain team, POLS/BSC, ACH/BSC, BIFI/FTM, SUPER/BSC, AVA/ETH, SPELL/AVAXC, ALPACA/FTM, FTM/ETH, FARM/BSC, Deposits of the DEXE/BSC bridge token network, deposits of the above assets in other networks remain open.

Conflux tweeted that as an emergency precautionary measure, Multichain’s joint minting rights have been suspended to ensure the safety of user assets. No loss of funds has been detected so far and the ecosystem is functioning normally. If users need to perform cross-chain operations, it is recommended to choose other available infrastructures, such as Shuttleflow, Cbridge, Meson, Confluxhub. The Conflux Foundation promises that if any losses caused by recent multi-chain anomalies are discovered, it is willing to work with users to solve the problem and take corresponding responsibilities.