Multichain Breach Forces Circle to Freeze $63 Million in USDC

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By BitcoinWiki News

Key Takeaways:

– Circle, the issuer of USD Coin (USDC), has frozen $63 million belonging to three wallet addresses associated with the hack of Multichain.
– Multichain experienced a security breach in which $126 million worth of digital assets were mysteriously transferred to third-party wallets.
– Multichain has confirmed the incident and is conducting an investigation into the cause, urging users to stop using its services.
– Formerly known as Anyswap, Multichain allows users to transfer cryptocurrency assets across different blockchain networks.
– Multichain has faced controversies earlier this year, including rumors of the team being arrested by Chinese police and allegations of Chinese authorities gaining control over its hardware and cold wallet.
– Binance has decided to cease facilitating deposits and withdrawals of cross-chain bridge tokens associated with Multichain.
– In the second quarter of 2023, hackers have stolen more than $204 million worth of digital assets in DeFi-related hacks and scams, an increase of almost 7 times compared to the same quarter last year.
– Despite the higher frequency of incidents, the total amount lost during the quarter was lower than the previous year’s quarter, which saw $40 billion lost to scammers and hackers.
– So far, hackers have stolen over $667 million in the first half of 2023, with March being the worst month in terms of losses.


USD Coin (USDC) issuer Circle has frozen $63 million belonging to three wallet addresses associated with the hack of the cross-chain bridge platform Multichain. Security firm PeckShield revealed that Circle froze the funds after a significant outflow of funds from Multichain following the security breach. Multichain confirmed the incident and advised users to stop using its services. It is unclear when the resumption of services will occur. Multichain, formerly known as Anyswap, allows users to transfer cryptocurrency assets across different blockchain networks. The incident comes as hackers stole over $204 million worth of digital assets in various hacks and scams in the decentralized finance space during the second quarter of 2023, according to a report from De.Fi.

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