Binance CEO “CZ” Responds to Multichain Exploit

Changpeng Zhao, CZ the CEO of Binance, has responded to the recent exploit on the Multichain protocol, assuring Binance users that their funds are safe. On Thursday, July 6, an exploit occurred on the multichain bridge, resulting in a significant outflow of funds, suspected to be worth millions of dollars.

CZ Binance On Multichain

According to CoinGape reports, approximately $125 million worth of multi-chain assets were drained from various wallets connected to the Multichain protocol. The most substantial exploit, amounting to $122 million, took place on the Fantom bridge.

Notably, assets such as wBTC, USDC, USDT, and other altcoins were moved out during the incident. The exploit has triggered investigations into the matter.

“Looks like another hack happened on Multichain. This DOES NOT affect users on @Binance or @Binance itself. We have swapped all assets out and closed deposits a while back. Regardless, we offer our assistance in helping with the situation. Stay #SAFU.”

– CZ Binance, July 07, 2023

What’s Next for Multichain?

Following the exploit, Multichain protocol issued a tweet acknowledging the abnormal movement of lockup assets from the Multichain MPC address to an unknown address. The team is currently investigating the incident and remains uncertain about the exploit’s nature. They said- “It is recommended that all users suspend the use of Multichain services and revoke all contract approvals related to Multichain.”

In response to the exploit and to ensure the safety of its users, Binance has decided to halt all deposits and withdrawals for the ten more Multichain-bridged tokens, just two days ago. This action comes after a previous suspension of these tokens due to certain transactions on the Multichain (MULTI) protocol being frozen in May.

CoinGape reported that they announched the temporarily suspension deposits for several bridged network tokens as clarifications from the Multichain team was pending. Binance’s decision aims to prevent potential vulnerabilities and protect users from further risks associated with the Multichain exploit.