Fantom Foundation Takes Proactive Measures Following Multichain Protocol Incident
The Fantom Foundation is a key funding source for Fantom's research and development which has issued a statement acknowledging the recent developments concerning the struggling crypto bridge Multichain . The foundation has taken steps to address the situation.
The Fantom Foundation is a key funding source for Fantom’s research and development which has issued a statement acknowledging the recent developments concerning the struggling crypto bridge Multichain . The foundation has taken steps to address the situation.
Freezing Stablecoins and Impact on Fantom Network
In response to the news shared by the Multichain protocol on July 14 the Fantom Foundation confirmed that it has requested leading stablecoin issuers including Circle (USDC), Tether (USDT) and TrueUSD (TUSD) to freeze tokens bridged using the Multichain bridge on the Fantom network . This action was taken after the crypto bridge fell victim to a $ 130 million hack which led to the freezing of stablecoins such as USDC, USDT and TUSD.
Multichain Protocol’s Arrests and Impact on Operations
Multichain protocol CEO Zhaojun’s arrest on May 31 and subsequent loss of contact were confirmed by the protocol. Zhaojun’s sister who played a crucial role in safeguarding protocol assets was also detained by Chinese authorities on July 7 and remained unreachable . With these arrests rendering the protocol inoperable and the remaining team lacking access to operational funds Multichain decided to stop its activities.
Fantom Foundation’s Response and Frozen Funds
Expressing disappointment over the Multichain protocol situation the Fantom Foundation announced that it has successfully frozen around $62 million worth of funds by requesting the freeze of affected stablecoins on its network. The foundation is actively working to identify and freeze any other assets that may have been impacted by the incident . In the meantime the foundation has initiated the development of an alternative crypto bridge infrastructure to replace Multichain and previously funded the Axelar Network and LayerZero duo.
Through its fast response and proactive measures the Fantom Foundation aims to protect the interests of its network users and mitigate the impact of the Multichain incident . The foundation’s commitment to establishing a reliable and secure bridge infrastructure reflects its dedication to maintaining a strong ecosystem for the benefit of all participants in the crypto space.
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