A web3 crypto cross-chain protocol has been hacked to the tune of over a hundred million dollars, according to one blockchain watchdog. New data from cybersecurity firm PeckShield reveals that bad actors were able to steal $126 million from the Multichain’s Fantom (FTM) bridge, including crypto assets such as Chainlink (LINK), Wrapped Bitcoin (wBTC), Wrapped […]
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Some Multichain contracts on Ethereum suffered withdrawals of more than half of their deposits, causing on-chain sleuths to fear an exploit is underway.
Abnormally large outflows from the Multichain MPC bridge platform on July 6 have sparked fears that an exploit could be underway. Over $102 million worth of crypto has been withdrawn from Multichain’s Fantom bridge on the Ethereum side, as well as $666,000 from Dogechain and $5 million from Moonriver.
Multichain likely hacked. Exit all multichain assets. Good idea to revoke approvals to multichain bridge if you had any
— Curve Finance (@CurveFinance) July 6, 2023
On July 6, 7,214 Wrapped Ether (WETH) tokens (worth $13.6 million), 1,024 Wrapped Bitcoin (WBTC) (worth $31 million) and $58 million worth of US Dollar Coin (USDC) were withdrawn from the Fantom bridge’s Ethereum smart contract, with a total of approximately $102 million in cryptocurrency withdrawn.
In addition, the Dogechain bridge’s Ethereum contract saw a withdrawal of $666,000, which represented more than 86% of its total deposits, leaving only around $100,000 worth of assets remaining in the bridge. $5,872,661 worth of USDC and Tether (USDT) were withdrawn from the Multichain Moonriver bridge contracts on Ethereum, leaving only around $700,000 remaining on it.
Several on-chain sleuths took to Twitter to label the event as a possible exploit. Blockchain security firm Peckshield tagged the Multichain team in a post showing the Fantom bridge transactions, saying “You may want to take a look.”
Hi @MultichainOrg you may want to take a look: https://t.co/D4GKGpuBtw pic.twitter.com/3qURqGmes8
— PeckShield Inc. (@peckshield) July 6, 2023
This led one commenter to remark that it looks like “another massive hack.” On-chain investigator Spreek posted the Dogechain transactions with the comment “dogechain multichain drained.”
Cointelegraph could not confirm by the time of publication whether the contracts were “drained” or whether a large amount of funds were simply withdrawn by users.
Cointelegraph reached out to the Multichain team on their Discord channel, but did not get a response by the time of publication. Multichain's last post on Twitter was June 29.
Related: Poly Network urges users to withdraw after exploit affects 57 crypto assets
Multichain is a multi-party computation (MPC) bridging network. When a user wants to bridge assets from one chain to another, the Multichain network first confirms that the assets have been locked on the first chain and then mints derivative assets on the second chain.
When a withdrawal is made, the network goes through this process in reverse: it first confirms that the derivative coins have been destroyed on the second chain, then releases the assets backing them on the first chain.
The Multichain team claims that the cryptographic keys controlling this process are split into multiple shards and distributed throughout the network. This should theoretically prevent any single person or group from being able to make unauthorized withdrawals.
Multichain has been suffering from unspecified technical problems over the past few weeks. On May 31, the team announced that their CEO had gone missing and they were experiencing “multiple issues due to unforeseeable circumstances,” leading to delayed transactions. On July 5, Binance halted withdrawals of some Multichain derivative tokens due to the network failing to process transactions in a timely manner.
Asia Express: HK crypto ETFs on fire, Binance warns on Maverick FOMO, Poly hack
A widely followed crypto strategist thinks that Ethereum (ETH) competitor Fantom (FTM) is primed for a significant move to the upside. Analyst Michaël van de Poppe tells his 659,600 Twitter followers that Fantom looks bullish as long as it is trading above $0.30. According to Van de Poppe, FTM’s fireworks will likely begin when it […]
The post Crypto Analyst Predicts Rallies for Ethereum Rival Fantom, Updates Outlook on Three Additional Altcoins appeared first on The Daily Hodl.
A widely followed crypto analyst is breaking down Bitcoin (BTC) and altcoins after a week of sideways price action for crypto. Crypto trader Michaël van de Poppe tells his 659,500 Twitter followers that BTC is now moving into a “potential scenario for a long trigger.” “Well, we got the sweep for Bitcoin.” BTC is worth $30,038 at […]
The post Crypto Analyst Breaks Down Bitcoin (BTC), Fantom (FTM), Litecoin (LTC) and the Altcoin Markets appeared first on The Daily Hodl.
Developers will get a 15% cut of the fees they generate, but only if their app has done more than 125,000 transactions and has existed for three months.
A new program from the Fantom Opera network team will pay developers for the gas fees they generate from users, according to a May 31 announcement. Specifically, the “Gas Monetization Program” will pay eligible developers 15% of the total gas fees their apps generate.
Gas Monetization on #Fantom is live! ⛽
— Fantom Foundation (@FantomFDN) May 31, 2023
The program provides dApps with a sustainable income by offering them a 15% share of the gas fees they generate.
Over 12,000 $FTM has been distributed thus far https://t.co/BqpuKtrZh0
Six Web3 apps have already been approved for the program, including ParaSwap, Beethoven X, Stargate, LayerZero, WOOFi and SpookySwap. These apps have generated over 12,000 Fantom (FTM) in rewards already (worth approximately $3,715), the announcement stated.
The program was inspired by the “Web2 ad-revenue model” implemented by sites like YouTube and Snapchat that pay content creators for their contributions. The Fantom team hopes it will provide developers with an “alternative source of revenue,” leading to a “sustainable” ecosystem for Fantom.
However, not all apps will be eligible for the program. Protocols that have done less than 125,000 transactions or have been live on Fantom for less than three months will be automatically excluded. Others can apply to become part of the program, but Fantom warned that “the criteria are subject to change as the Fantom Foundation assesses their effectiveness.”
The team encountered some pushback from users when it first began discussing the Gas Monetization Program. “There are some who have speculated that the Gas Monetization program might discourage developers from creating gas-efficient contracts, as higher gas fees results in greater FTM rewards for them to claim,” the Fantom team said.
However, Fantom argued that this reasoning is flawed. The team believes app developers will still need to make gas-efficient contracts; otherwise, the apps will be challenged by competitors. The team clarified that apps perceived to be abusing the program may be suspended from participation.
Fantom has been preparing for the Gas Monetization Program since December, when it proposed a 75% cut to the token burn rate to finance it. Later that month, Fantom Foundation director and decentralized finance architect Andre Cronje announced that the team would focus on “gas reform” in 2023 to onboard more developers and users.
Fantom (FTM) co-founder Andre Cronje is teasing the launch of a new cryptocurrency-friendly bank later this year. Cronje tells his 384,500 Twitter followers that a bank providing crypto-related financial services may launch later this year. “Need a card, or just payments infrastructure? If the latter, I can add you to our closed beta. If card, […]
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The total value locked (TVL) in decentralized finance (defi) during the first week of April is about $50 billion, roughly the same as on March 1. The value locked dropped to $42 billion on March 12 but has since rebounded as protocols such as Lido Finance, Aave, and Justlend recorded double-digit monthly gains. After the […]
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The post Crypto Analyst Updates Outlook on Bitcoin, Avalanche and One Ethereum Rival That’s Soared 135% This Year appeared first on The Daily Hodl.
Crypto analytics firm Nansen says that more than $850 million worth of several crypto assets flowed out of Binance after a US federal agency accused the exchange of regulatory violations. According to Nansen, the world’s largest exchange by trading volume saw customers moving large volumes of virtual assets off the platform including Ethereum (ETH), Polygon […]
The post $852,000,000 in Ethereum, Polygon, Fantom and Additional Altcoins Have Left Binance Following CFTC Lawsuit: Nansen appeared first on The Daily Hodl.
According to the token protocol startup Noble, the second-largest stablecoin, USDC, will be integrated into the Cosmos blockchain, as the company has partnered with Circle Financial for the rollout. Noble details that the integration will give access to Circle’s USDC stablecoin to more than 50 Inter-Blockchain Communication (IBC) networks. USDC Native Support Is Coming to […]