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News

Fantom Foundation Freezes $60M USDC and $2M USDT In Multichain Wallet

July 15, 2023 - Around 3 mins mins to read

Key Points:

  • The Fantom Foundation said it was highly disappointed to hear about the latest Multichain news.
  • The team immediately contacted to freeze $60 million in USDC and $2 million in USDT in the Multichain wallet.
  • Yesterday afternoon, Multichain CEO Zhaojun was arrested, and the chain officially stopped working due to running out of funds.
The Fantom Foundation tweeted that they were highly disappointed with the latest Multichain news and immediately froze the assets to avoid risks.
Fantom Foundation Freezes $60M USDC and $2M USDT In Multichain Wallet

In response to the information given by the cross-chain bridge project itself, the team immediately began contacting stablecoin issuers, including Circle (USDC), Tether (USDT), and TrueUSD (TUSD), to freeze their accounts assets in the Multichain wallet.

The team has verified that approximately over $60 million in USDC and over $2 million in USDT have been frozen and are in the process of identifying other affected assets.

The Fantom Foundation is actively engaging with various sources and contacts to gain a comprehensive understanding of the Multichain incident. In addition, a group of existing Multichain employees has been formed to understand the situation from their perspective better and provide assistance where possible.

Over the coming weeks, the foundation will announce more activities on the Opera chain to help the community and builders move forward.

Fantom Foundation Freezes $60M USDC and $2M USDT In Multichain Wallet

Yesterday afternoon, Multichain officially announced that the Chinese police had confiscated the computer, hardware wallet, phone, and keys of CEO Zhaojun. While the project is still being “protected” by the multi-signature encryption mechanism, the server is still running on the drug account managed by Mr. Zhaojun.

As a result, when this CEO was arrested, the transaction signing process could not be done, leading to the project being unable to fix the recent technical vulnerabilities.

The project also said that all operating funds and user assets are under the control of Mr. Zhaojun and are being placed under the control of the Chinese police.

The team also explained that they did not disclose Mr. Zhaojun’s arrest for several weeks because of the host country’s laws. In the early days of the rumors, the team shared the force majeure situation to announce the inability to contact the CEO.

Multichain was hacked with a total loss of 130 million USD, negatively affecting the DeFi ecosystem on Fantom. A lot of users on Fantom were severely affected. USDC price on Fantom is currently only $0.4. Many people began to question Multichain rug-pull itself after the crises encountered.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

News

Fantom Foundation Freezes $60M USDC and $2M USDT In Multichain Wallet

Key Points:

  • The Fantom Foundation said it was highly disappointed to hear about the latest Multichain news.
  • The team immediately contacted to freeze $60 million in USDC and $2 million in USDT in the Multichain wallet.
  • Yesterday afternoon, Multichain CEO Zhaojun was arrested, and the chain officially stopped working due to running out of funds.
The Fantom Foundation tweeted that they were highly disappointed with the latest Multichain news and immediately froze the assets to avoid risks.
Fantom Foundation Freezes $60M USDC and $2M USDT In Multichain Wallet

In response to the information given by the cross-chain bridge project itself, the team immediately began contacting stablecoin issuers, including Circle (USDC), Tether (USDT), and TrueUSD (TUSD), to freeze their accounts assets in the Multichain wallet.

The team has verified that approximately over $60 million in USDC and over $2 million in USDT have been frozen and are in the process of identifying other affected assets.

The Fantom Foundation is actively engaging with various sources and contacts to gain a comprehensive understanding of the Multichain incident. In addition, a group of existing Multichain employees has been formed to understand the situation from their perspective better and provide assistance where possible.

Over the coming weeks, the foundation will announce more activities on the Opera chain to help the community and builders move forward.

Fantom Foundation Freezes $60M USDC and $2M USDT In Multichain Wallet

Yesterday afternoon, Multichain officially announced that the Chinese police had confiscated the computer, hardware wallet, phone, and keys of CEO Zhaojun. While the project is still being “protected” by the multi-signature encryption mechanism, the server is still running on the drug account managed by Mr. Zhaojun.

As a result, when this CEO was arrested, the transaction signing process could not be done, leading to the project being unable to fix the recent technical vulnerabilities.

The project also said that all operating funds and user assets are under the control of Mr. Zhaojun and are being placed under the control of the Chinese police.

The team also explained that they did not disclose Mr. Zhaojun’s arrest for several weeks because of the host country’s laws. In the early days of the rumors, the team shared the force majeure situation to announce the inability to contact the CEO.

Multichain was hacked with a total loss of 130 million USD, negatively affecting the DeFi ecosystem on Fantom. A lot of users on Fantom were severely affected. USDC price on Fantom is currently only $0.4. Many people began to question Multichain rug-pull itself after the crises encountered.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.