"Damn, how come it's like this?"
Cryptocurrency giant Binance is set to halt all deposits and withdrawals for the ten Multichain-bridged* tokens that were previously part of its deposit suspension after certain transactions on the Multichain (MULTI) protocol were frozen in May 2023.
*Decentralized applications that enable the transfer of assets and information between different blockchains
The ten tokens are connected to Binance Chain, Ethereum (ETH), Avalanche (AVAX) and Fantom (FTM), but users can still withdraw them through other networks supported by Binance.
The problems plaguing Multichain's cross-chain bridge began in late spring after users flooded their Telegrams with complaints that their transfers were not only delayed but blocked.
At the time, there were rumors that the Chinese authorities had detained several Multichain executives including Chief Executive Officer (CEO) Zhaojun but he later disappeared and remains a mystery to this day.
Following a lot of negative news surrounding the cross-chain bridge due to its vulnerability, ETH co-founder Vitalik Buterin has warned investors not to rely entirely on the cross-chain bridge.
This is because the cross-chain bridge has been the target of crypto hackers including the Multichain protocol after some hackers took $3 million from Multichain in early 2022, but whitehat hackers** acted to return $900,000.
*Individuals who use hacking skills to identify security weaknesses in hardware, software or networks
After the attack, Binance led a $150 million funding round to reimburse victims and among the contributors were Animoca, the company behind the crypto game The Sandbox, and tech venture capital firm a16z.
