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Tether Freezes Accounts Tied to Multichain Hack as DeFi Project Faces Challenges

tether freezes accounts tied to multichain hack as defi project faces challenges

Tether has announced that it has frozen multiple accounts connected to the theft of over $2.5 million USDT in the recent Multichain hack. Multichain reported being the target of a hack which resulted in the loss of $126 million worth of tokens from its smart contracts.

Multichain Suspends Services and Recovery Efforts Remain Uncertain

Multichain has paused its services in light of the attack and has advised users not use its bridge till further notice . Unfortunately the project hasn’t offered any updates on the hack’s current state or its recovery attempts. As the team started to go silent at the end of May rumors started to circulate on Twitter that Multichain’s CEO and co-founder Zhaojun had been detained in China . Zhaojun and DJ Qian co-founded the project and Zhaojun held the key access codes required for resolving protocol-related technical concerns.

tether freezes accounts tied to multichain hack as defi project faces challenges2

Tokens Migrated to Ethereum and Binance Smart Chain Most Affected

The most severely affected tokens by the hack were those that had moved from the Phantom blockchain to Ethereum or Binance Smart Chain. According to DeFi Llama Multichain presently has cryptocurrency locked inside its system that is valued at about $1.26 billion. All bridge activities are temporarily suspended since the company has stopped operating which has put supply chains at a complete halt.

Tether Responds and Multichain Faces Challenges

The suspension of Multichain’s services and the lack of updates on recovery efforts raise concerns among users and investors. The affected tokens and the significant number of locked cryptocurrencies within Multichain’s system highlight the urgency for resolution . As the situation continues to unfold the crypto community eagerly awaits further developments and hopes for a quick resolution to the challenges faced by Multichain and its users.

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