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News

Fantom Can’t Promise Anything With Stablecoins In Multichain Failure

July 17, 2023 - Around 2 mins mins to read

Key Points:

  • The Fantom Foundation said it is contacting Circle and Tether to see if the platform can do anything with the frozen funds.
  • The platform says it can’t promise anything in advance, and there’s probably nothing more that can be done about this incident.
  • Previously, Fantom had to freeze over $60 million USDC and more than $2 million USDT after Multichain announced its shutdown due to the arrest of its CEO.
Fantom Foundation worried users when it responded to the Multichain problem in Telegram with its helplessness before it happened on Multichain.
Fantom Can't Promise Anything With Stablecoins In Multichain Failure

“That being said, among other things, we’re in touch with Circle and Tether to see if something can be done with the frozen funds. There’s no promises and it might even not be possible to do anything, so keep this info as it is. We’re also trying to understand better what happened and what’s going on with multichain.”

In earlier news, Fantom founder Andre Cronje responded to a user question on the forum that the failure of Multichain was a “severe blow”.

All options are currently being explored, and working with relevant organizations to recover assets, possibly even using Foundation funds. No confirmation can be made until more data is available.

However, the foundation said it will not ignore it and will do what it can to compensate people. In addition, Fantom will continue to work with Circle, Tether, TrueUSD, Binance, and more for native distribution and consider the synthesis of native bridging infrastructure.

As more verifiable information becomes available, Fantom will recommend an action plan. Andre Cronje also stated that the foundation and all employees are exposed to these assets.

Fantom Can't Promise Anything With Stablecoins In Multichain Failure

The incident started late last week after Multichain officially issued a shutdown notice due to their CEO Zhao Jun being arrested by the Chinese police. This fact was hidden, but before that, many users in China spread in the community. The reason given by the platform for not informing users is due to the influence of legal regulations during the investigation.

After receiving the information, Fantom Foundation made an announcement immediately contacting stablecoin issuers to freeze over $60 million USDC and over $2 million USDT on their Multichain wallet.

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 Can’t Promise Anything With Stablecoins In Multichain Failure

Key Points:

  • The Fantom Foundation said it is contacting Circle and Tether to see if the platform can do anything with the frozen funds.
  • The platform says it can’t promise anything in advance, and there’s probably nothing more that can be done about this incident.
  • Previously, Fantom had to freeze over $60 million USDC and more than $2 million USDT after Multichain announced its shutdown due to the arrest of its CEO.
Fantom Foundation worried users when it responded to the Multichain problem in Telegram with its helplessness before it happened on Multichain.
Fantom Can't Promise Anything With Stablecoins In Multichain Failure

“That being said, among other things, we’re in touch with Circle and Tether to see if something can be done with the frozen funds. There’s no promises and it might even not be possible to do anything, so keep this info as it is. We’re also trying to understand better what happened and what’s going on with multichain.”

In earlier news, Fantom founder Andre Cronje responded to a user question on the forum that the failure of Multichain was a “severe blow”.

All options are currently being explored, and working with relevant organizations to recover assets, possibly even using Foundation funds. No confirmation can be made until more data is available.

However, the foundation said it will not ignore it and will do what it can to compensate people. In addition, Fantom will continue to work with Circle, Tether, TrueUSD, Binance, and more for native distribution and consider the synthesis of native bridging infrastructure.

As more verifiable information becomes available, Fantom will recommend an action plan. Andre Cronje also stated that the foundation and all employees are exposed to these assets.

Fantom Can't Promise Anything With Stablecoins In Multichain Failure

The incident started late last week after Multichain officially issued a shutdown notice due to their CEO Zhao Jun being arrested by the Chinese police. This fact was hidden, but before that, many users in China spread in the community. The reason given by the platform for not informing users is due to the influence of legal regulations during the investigation.

After receiving the information, Fantom Foundation made an announcement immediately contacting stablecoin issuers to freeze over $60 million USDC and over $2 million USDT on their Multichain wallet.

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.