Bitcoin News and Finance
Multichain Woes: Users Informed of an Abnormal Transfer of Assets to Unknown Address Skip to main content

Multichain Woes: Users Informed of an Abnormal Transfer of Assets to Unknown Address

Multichain Woes: Users Informed of an 'Abnormal' Transfer of Assets to Unknown Address

Users of the cross-chain protocol Multichain were on July 6 informed of an abnormal transfer of lockup assets on the Multichain MPC address to an unknown address. While the Multichain team has urged users to stop using the cross-chain protocol, Binance CEO Changpeng Zhao (CZ) told his followers that the incident does not affect Binance users or the exchange itself.

Users Told Revoke All ‘Contract Approvals Related to Multichain’

Just over a month after the disappearance of the Multichain CEO known only as Zhaojun sent shockwaves through the crypto community, users of the cross-chain protocol were on July 6 informed of an abnormal transfer of “lockup assets to an unknown address.” According to a statement shared via the cross-chain protocol’s verified Twitter handle, the Multichain “team is not sure what happened and is currently investigating.”

As reported by Bitcoin.com News on June 3, Zhaojun’s unavailability saw the router technology problems experienced by the cross-chain protocol cause disruptions to regular cross-chain services. The team revealed then that several chains including Kekchain, Publicmint, Dyno Chain, Red Light Chain, Dexit, Ekta, HPB, ONUS, Omax, Findora, and Planq had been affected. At the time, the team did not ask users to stop using the protocol even as rumors grew that Zhaojun had been arrested in China.

However, more than 30 days after Multichain’s problems came to the fore, the team behind the cross-chain protocol has told users to stop utilizing it.

“It is recommended that all users suspend the use of Multichain services and revoke all contract approvals related to Multichain,” the team said.

Reacting to Multichain’s tweet, Binance CEO Changpeng Zhao (CZ) told his followers that the “hacking” incident does not affect users on Binance or the cryptocurrency exchange itself. He added:

We have swapped all assets out and closed deposits a while back. Regardless, we offer our assistance in helping with the situation.

‘Attacker Is Probably Not a Hacker’

While the Binance CEO has characterized the transfer lockup assets on the Multichain MPC address as hacking, a Twitter user going by the name Oxloki said their analysis suggests that the attacker may not be a hacker.

“The transferor has enough time. Considering the technical characteristics of MPC, the transferor may have completely obtained control of private key shards exceeding the threshold in some way. The ‘attack method’ is very simple, it is a simple transfer operation, there is no contract, and there is a test, the attacker is probably not a hacker,” the Twitter user explained.

Meanwhile, in a notice shared via Twitter, Kyber Network, a blockchain-based liquidity hub, urged users to “revoke all permissions and not use any Multichain service.” According to the team, Kyber Network is in the process of “disabling the bridge function on our UI.”

DIP Exchange, a decentralized exchange platform, said that while the latest incident on Multichain may slow it down this will not stop it from continuing to build.

What are your thoughts on this story? Let us know what you think in the comments section below.

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r
Post a Comment
Read more
Blogarama - Blog Directory