• Multichain (MULTI) protocol halted services today after confirming the abnormal movements of funds from its MPC address.
• Security firm Peckshield reported that Multichain was exploited for $126 million, with the attacker moving funds from Fantom (FTM) and Moonriver (MOVR).
• Following the incident, Multichain advised users to revoke all approvals related to the protocol.
Multichain Halts Services After Exploit
Multichain’s MULTI token plunged 16% after an exploit where $126 million was stolen from its MPC address. The attacker was able to move funds from Fantom (FTM) and Moonriver (MOVR) bridge.
Fantom Foundation Evaluating Circumstances
Following this incident, Multichain advised users to revoke all approvals related to the protocol. The Fantom Foundation has said it is “evaluating the circumstances and will provide an update as soon as we have more to share”.
Details of Exploit
The details of the exploit are yet unknown, however initial reactions from the community suggest a possible compromise in one or more smart contracts due to a lack of security checks on transfers between bridges and tokens.
Security Concerns Growing
This latest incident is raising concerns about security protocols in DeFi platforms, with many emphasizing on regular risk assessments and secure coding practices as basic protocols for developers working in DeFi ecosystems.
Conclusion
It remains unclear how much damage has been done by this attack, however it has highlighted the need for improved security measures when dealing with decentralized finance projects.