Fantom Foundation Freezes Tokens Bridge to Multichain - COINTURK NEWS
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Fantom Foundation Freezes Tokens Bridge to Multichain

7:19 pm (79 days ago)
July 15, 2023

New Information Flow from Multichain

Fantom Foundation, one of the main financial sources for research and development activities of Fantom (FTM), has released a statement confirming proactive action following the latest information from the Multichain team, the struggling crypto bridge.

The foundation confirmed that it took action in response to the news shared by the Multichain protocol on July 14, admitting the arrest of high-level figures under the leadership of Chinese authorities. The foundation requested the freezing of tokens bridged using the Multichain bridge, including Circle (USDC), Tether (USDT), and TrueUSD (TUSD), among other leading stablecoin issuers on its network.

Stablecoins on the Fantom network, including USDC, USDT, and TUSD, which were bridged using the Multichain bridge, have been frozen as primary assets following a recent $130 million hack attack on the crypto bridge.

The Multichain protocol confirmed the arrest of CEO Zhaojun on May 31 and his subsequent loss of contact. It was reported that Zhaojun’s sister, who played a significant role in safeguarding some of the protocol’s assets, was also detained by the Chinese police on July 7 and has since become unreachable. These two arrests rendered the protocol inoperative, leading the remaining Multichain team to decide to halt their operations due to a lack of access to operational funds.

In a lengthy briefing note to the Multichain team, it was added that they did not have access to disable the Domain Account, and therefore, the platform is still active. Users were advised not to send any funds to any wallet addresses associated with the protocol.

Fantom’s Future After Multichain Protocol

Fantom Foundation expressed its disappointment with the latest news from the Multichain protocol, confirming the freezing of a total of $62 million in funds following the request to freeze the three stablecoins affected by the Multichain issue on its own network.

The foundation added that work is being done to identify other assets that may have been affected by the process and that they will also be frozen. Previously, the Fantom Foundation had funded Axelar Network and LayerZero and announced efforts to establish an alternative crypto bridge infrastructure to Multichain.

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