Explore Multichain's Bridge exploit, resulting in a loss of over $100 million in WBTC, ETH, USDC, and DAI. Understand the details and the reasons behind it.
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Mutlichain Bridge Exploited for $100 Million on Fantom

Mutlichain Bridge Exploited for $100 Million on Fantom

Explore Multichain's Bridge exploit, resulting in a loss of over $100 million in WBTC, ETH, USDC, and DAI. Understand the details and the reasons behind it.

Last update:
Jul 7, 2023
| Issue
#
55

Hi folks! Welcome to another edition of the Datawallet newsletter, a place where we cover all things crypto-related for newbies, experts, and everyone in between. Grab your favorite cold drink and enjoy today’s edition. 

Today’s drop will cover these key daily news items:

Mutlichain Bridge Exploited for $100 Million

In an alarming development, the Fantom network's Multichain bridge has witnessed the withdrawal of tens of millions of dollars in tokens. Security firms speculate that it could be a security breach. The withdrawn assets include $58 million in USDC, 1,020 wrapped Bitcoin ($30.9 million), 7,200 wrapped Ether ($13.7 million), and $4 million in DAI, along with other notable tokens. Assets have also been observed moving on Multichain's Moonriver bridge and Dogechain.

Surprisingly, none of the withdrawn funds have been transferred beyond their initial destinations. Neither have they been sold or passed through a crypto mixing service.

Fantom Foundation, in an official statement, confirmed its awareness of the unfolding situation, stating that they are "actively evaluating the circumstances."

Security firm PeckShield initially suggested a connection to LayerZero adding support for four tokens, aligning with the moved tokens. LayerZero's CEO, Bryan Pellegrino, however, completely ruled out any relation to their platform, claiming it as a "Multichain hack."

Multichain has not yet issued any statement regarding the situation. The service, previously exploited in 2021 when named Anyswap, has faced multiple technical issues and managerial challenges, including losing contact with its CEO Zhaojun, amid rumors of his detention in China.

Namibia to regulate crypto

Namibia has followed the lead of other African countries by endorsing cryptocurrencies and digital assets through the approval of a bill in the National Assembly. The legislation, which was passed in the lower house of Namibia's parliament on June 22, is designed to oversee digital assets, cryptocurrencies, and virtual asset service providers (VASPs) within the nation.

The aim of the bill is to set up a structure for the licensing and regulation of VASPs. It also intends to designate a regulatory body in charge of monitoring these providers and their operations.

Key goals of the law include safeguarding consumers, averting market misconduct, and reducing the threat of money laundering, terrorism financing, and proliferation activities tied to digital asset markets. The law also addresses incidental issues related to these targets.

Binance referring Dutch customers to rival crypto exchange

Binance is directing its Dutch clients to competitor crypto exchange Coinmerce as it discontinues operations in the Netherlands, Coinmerce announced on Thursday. After failing to gain approval as a virtual asset provider, Binance can no longer provide its services to residents of the Netherlands. However, it has proposed a complimentary transfer to Coinmerce, a rival that has been authorized by the central bank to provide Dutch crypto exchange and wallet services since 2020.

Ethereum NFT royalties hit 2-year low

The earnings from royalties of nonfungible token (NFT) initiatives have plummeted to their lowest level in two years, as per a study by blockchain research company Nansen. Information provided to Cointelegraph underscores the trough for NFT royalties ahead of a recent decline in the baseline value of Bored Ape Yacht Club (BAYC) NFTs, in addition to the dispute linked to the unveiling of the Azuki Elementals collection.

Coca Cola Serbia and Solana team up

Coca-Cola in Serbia has partnered with SolSea, a Solana NFT platform, to offer non-fungible tokens at a music event. As part of the deal, the soda company will give away 100 limited edition hoodies, along with NFTs, to select participants. All.Art, an NFT infrastructure protocol, is facilitating this process. Festival-goers can use "Magic Mirror," a tool that displays random merchandise on a 3D image of the user in real-time. They can receive a picture of this by scanning a QR code.

Other breaking news

Wrapping Up

That's it for this issue of the Datawallet newsletter. As we've seen, the crypto world is dynamic and rapidly evolving, with significant events like the Multichain bridge hack, Namibia's crypto regulation, Binance's Netherlands setback, a slump in Ethereum NFT royalties, and the innovative partnership between Coca Cola Serbia and Solana. Stay informed, invest wisely, and we'll continue to bring you the latest updates in our upcoming issues.

Stay safe and happy investing!