Compromised Protocol Multichain Resumes Transactions Amid Recovery Efforts After Hack
Summary:
The compromised cross-chain protocol Multichain has resumed confirming transactions after a security breach. Verified transactions led to a decrease in pending operations. Some deposits were successfully confirmed on the recipient chains, while others only seem confirmed on Multichain's explorer. Due to the protocol's compromise, it's not recommended to connect to Multichain using a wallet app. The resumed transactions may indicate an attempt to recover after the hack or the hacker moving assets. Multichain started verifying transactions around Nov 1st. The story is still developing.
The compromised cross-chain protocol, Multichain, has verified numerous transactions, resulting in a decrease of pending operations, as evidenced by Multichain's explorer tool. It is confirmed that various transactions have been approved on the recipient chain, whereas some only appear confirmed on Multichain's explorer but not on the intended chain.
An alert pops up when users with the Metamask wallet extension attempt to access the Multichain explorer, signaling that the protocol has been breached. You can circumvent the warning by using a browser without a Web3 wallet installed. It is not advised to link to Multichain through a wallet app, as the website itself could pose a risk.
Given that these transactions seem to origin from a handful of addresses, there is a possibility that they are either the hacker trying to relocate stolen assets, or the protocol team's endeavor to reclaim control. As of 9:30 pm UTC, only one transaction is listed as pending on Multichain's explorer.
Transactions began to validate around 9 am on Nov 1st, as shown on the Multichain block explorer. On Nov 11th, 2023, Multichain confirmations were confirmed, according to Multichain.org. Also, some transactions have been approved on the exact destination chain. For instance, a transaction of about 20 DAI from Ethereum to Avalanche went through and was confirmed on Avalanche at 1:56 pm UTC. Nonetheless, a deposit of 0.1 BTC that was transferred from Ethereum to Polygon at 2:44 was confirmed on the Multichain block explorer, but hasn't been verified on Polygon.
Cyvers, a blockchain analytics platform, identified the restart of transactions in the morning and shared this data on X (formerly known as Twitter).
UPDATE: On July 6th, a $126M attack took place on @MultichainOrg. However, after 117 days of disruption, the exciting news is that today @MultichainOrg has resumed the processing of bridge transactions. Many of these transactions were successful. ️ We are carefully monitoring... https://t.co/KoizCgXYeJ pic.twitter.com/Nw4muay5xE— Cyvers Alerts (@CyversAlerts) November 1, 2023
On Nov 1st, some of the senders have shown multiple transactions, an indication of their belief in the operational integrity of the protocol. Caption: One account on Ethereum making numerous deposits to Multichain on Nov 1. Source: Etherscan. This story continues to develop, with updates to follow as they become available.
Published At
11/1/2023 9:39:34 PM
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