In a last-minute decision, major cryptocurrency exchange Binance has announced a temporary suspension of deposit transactions for certain networks of 10 altcoins. The suspension was reportedly due to situations unfolding on the Multichain (MULTI) network.
Deposits for 10 Altcoins Suspended
“Binance is temporarily suspending deposit transactions for the bridge token network listed below until a clear statement is received from the Multichain team,” read the official statement from the cryptocurrency exchange.
The 10 altcoins and networks for which Binance has temporarily halted deposit transactions are as follows:
- POLS (BSC)
- ACH (BSC)
- BIFI (FTM)
- SUPER (BSC)
- AVA (ETH)
- SPELL (AVAXC)
- ALPACA (FTM)
- FTM (ETH)
- FARM (BSC)
- DEXE (BSC)
Binance noted that deposit transactions from other networks for these altcoins are still ongoing.
The Reason Binance Suspended Deposits for 10 Altcoins
The reason for Binance’s decision to temporarily halt deposit transactions for these 10 altcoins stems from a series of allegations concerning the Multichain team. It was reported on May 24th that the Multichain team was arrested by Chinese police and a contract fund of $1.5 billion was claimed to be under control. Observers in the market noticed a transfer of 494,200 MULTI from the team address on the same day and made comments indicating that the Multichain bridge currently appears risky.
In response to these allegations, the Multichain team issued a statement saying, “While most of Multichain protocol’s cross-chain routs are functioning well, some cross-chain routs are unusable due to force majeure and it is unknown when the service will be resumed. Once service is restored, pending transactions will be automatically credited. Multichain will compensate affected users during this period, and the compensation plan will be announced later.”
In light of these statements, it is reported that Binance has taken this precautionary measure.
