Circle, Tether freezes over $65 million in assets transferred from Multichain

Multichain suspended operations after an unexplained transfer of crypto assets worth millions of dollars took place on the 6th July.

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Stablecoin issuers Circle and Tether have frozen over $65 million in assets related to the alleged exploitation of the Multichain multichain router protocol. This decision follows major unexplained releases from the Multichain MPC Bridge on July 6th.

According to the 0xScope knowledge graph protocol, three addresses that received at least $63.2 million in USD Coin (USDC) from Multichain are now frozen. Another Fantom Foundation report notes that more than $2.5 million in Tether (USDT) had also been frozen from two addresses listed by Etherscan as "Multichain Suspicious Addresses".

Over $125 million in cryptocurrencies were withdrawn from multiple wallets on July 6, affecting Multichain's Fantom Bridge, as well as the ecosystems of Dogechain, Moonriver, Kava, and Conflux. The cause of the abnormal transfer of assets remains unclear.

Update: Tether froze these accounts with >2.5m USDT on Ethereum transferred from Multichain: https://t.co/ bFYACtQ7t6https://t.co/zlRybitcJC

Thanks @Tether_to and team for your quick response.

— Fantom Foundation (@FantomFDN) July 8, 2023

On Twitter, Multichain announced that it was suspending current services, without specifying a return date. “Please do not use multi-chain bridging service now,” he warned, adding that “all bridging transactions will be blocked on source chains.”

Fantom Protocol CEO Michael Kong reportedly