Starting July 7, 2023, Binance will cease to facilitate deposits and withdrawals of several cross-chain bridge tokens associated with the Multichain project across specified networks.
This suspension will remain in effect until further notice.
The decision to suspend support for these tokens comes after the recent issues with the Multichain (MULTI) protocol, leading to the earlier suspension of deposits for multiple Multichain-bridged tokens on May 24, 2023.
As per the announcement, the suspension will affect a range of tokens created on Multichain across various networks.
Notably, tokens deployed on BNB Smart Chain, including Polkastarter (POLS), Alchemy Pay (ACH), Beefy.Finance (BIFI) and Harvest Finance (FARM) will be impacted.
Additionally, tokens minted through the bridge on Fantom, such as Beefy.Finance (BIFI) and Alpaca Finance (ALPACA) are also included in the list of affected tokens.
Furthermore, Travala (AVA), a token minted on Ethereum’s bridge, will also be subject to suspension.
May Meltdown: Multichain (MULTI) Protocol’s Price Plummets 30% in a Day
On May 24, 2023, the price of the Multichain (MULTI) token plummeted by 30% within a single day, reaching a trading value of $4.97.
According to DeFiLlama, despite experiencing a notable sell-off in May, the Multichain protocol, established in July 2020 in Singapore to address the demand for inter-blockchain communications, has maintained its Total Value Locked (TVL) at $1.3 billion.
The sell-off can be traced back to delays caused by a backend node upgrade, which took longer than expected.
This delay resulted in some users complaining that their Multichain cash had not arrived promptly, leading to increased panic and selling of the token.
The sell-off was further fueled by rumors circulating on social media platforms.
An administrator addressed the situation on the Multichain Discord channel, stating that most routes usually function, but specific routes, including Kava, zkSync, and Polygon zkEVM, were suspended during the upgrade.
Despite these challenges, the Multichain protocol’s TVL remained steady at $1.6 billion, showcasing the project’s resilience amid market turbulence and speculation.
Users Can Still Trade Unaffected Tokens from the Multichain Bridge Assets
Binance has suspended assets linked to the Multichain Bridge without specifying the exact reason behind this action.
The suspension is a follow-up to a previous measure taken against Multichain on May 25.
During that time, Binance temporarily halted support for deposits of specific tokens transferred through Multichain due to complications with the Multichain protocol.
Despite the ongoing suspension of the Multichain project, Binance assures its users that they can still deposit and withdraw the affected tokens using other networks supported by the exchange.
This means that as long as the transactions do not involve the Multichain project, the assets can continue to operate without interruption.
Binance has halted transfers of Multichain-linked tokens following a security incident in May 2023. The incident involved a hacker exploiting a vulnerability in the Multichain protocol to steal over $3 million worth of tokens.
In response to the incident, Binance has taken the following steps:
- Halted transfers of Multichain-linked tokens.
- Enabled a withdrawal freeze for all Multichain-linked tokens.
- Implemented a number of security measures to protect users’ funds.
- Reached out to Multichain to investigate the incident.
Binance has not yet announced when it will resume transfers of Multichain-linked tokens. However, the company has said that it will only do so once it is confident that the security vulnerability has been fixed.
The halt in transfers has caused some inconvenience for users who hold Multichain-linked tokens. However, Binance has said that it is taking the necessary steps to protect users’ funds and that it will resume transfers as soon as possible.
Here are some additional details about the security incident:
- The hacker exploited a vulnerability in the Multichain protocol that allowed them to create duplicate tokens.
- The hacker then used these duplicate tokens to withdraw over $3 million worth of tokens from Binance.
- Binance has since fixed the vulnerability and is working with Multichain to investigate the incident.
The security incident is a reminder of the risks involved in using cryptocurrency. However, it is also a reminder that exchanges like Binance are taking steps to protect users’ funds.
As a result of the incident, Binance has suspended deposits and withdrawals of all Multichain-linked tokens. The exchange is also working with Multichain to investigate the incident and to implement security measures to prevent future attacks.
Binance said that it will provide updates on the situation as they become available. In the meantime, users are advised to not deposit or withdraw any Multichain-linked tokens on Binance.
Here are some of the Multichain-linked tokens that have been affected by the suspension:
- Wrapped BNB (WBNB)
- Wrapped Bitcoin (WBTC)
- Wrapped Ethereum (WETH)
- Wrapped Tether (USDT)
- Wrapped USD Coin (USDC)
Binance is one of the largest cryptocurrency exchanges in the world, and the suspension of transfers of Multichain-linked tokens has had a significant impact on the cryptocurrency market. The price of WBNB, for example, has fallen by more than 10% since the suspension was announced.
It remains to be seen how long the suspension will last. However, Binance’s decision to suspend transfers of Multichain-linked tokens is a sign that the exchange is taking security seriously. It is also a reminder that the cryptocurrency market is still a relatively new and volatile market, and that investors should be aware of the risks involved.
In response to the incident, Binance has taken the following steps:
- Halted transfers of all multichain-linked tokens.
- Enabled a withdrawal function for users who have been affected by the hack.
- Increased security measures on the Multichain platform.
Binance has said that it is working with law enforcement to track down the hacker and recover the stolen tokens. The company has also said that it will reimburse users who have been affected by the hack.
The halt on transfers of multichain-linked tokens has caused some inconvenience for users. However, Binance has said that it is taking this step to protect users’ funds and to ensure that the platform is secure.
The incident has also raised concerns about the security of the Multichain platform. Multichain is a decentralized platform that allows users to transfer tokens between different blockchains. However, the platform has been criticized for its lack of security.
The hack of Multichain is a reminder of the risks associated with cryptocurrency. Cryptocurrency is a relatively new technology, and there are still security vulnerabilities that need to be addressed. Users should be aware of the risks before investing in cryptocurrency.
Here are some additional details about the incident:
- The hacker exploited a vulnerability in the Multichain platform that allowed them to mint fake tokens.
- The hacker then used these fake tokens to swap for real tokens on other platforms.
- The hack was discovered on May 10, 2023.
- Binance has said that it is working with law enforcement to track down the hacker and recover the stolen tokens.