Andre Cronje, creator of Fantom (FTM), says the recent exploitation of cross-chain bridge Multichain was a huge setback for its Ethereum (ETH) rival.
Cronje writes on the community forum that the Fantom team has been misled about Multichain’s true security level.
Cronje also says that he and his team plan to seek solutions that will cure all victims of the Multichain hack.
“Multichain was a big blow, we got a lot of assurances from the team around the server decentralization, access and geolocation distribution. Don’t trust, verify (I say this to myself).
We are currently exploring all options and working with relevant organizations to attempt to recover assets. Looking beyond other backstops or helping with recovery, even using the foundation’s treasury. Until we have more data, we can’t give hard confirmations. However, we will not leave this as it is, we will do everything we can to make everyone whole.
We also continue to work with Circle, Tether, TrueUSD, Binance, etc. for native issuance, and review roll-ups for native bridge infrastructure. Once we have more verifiable information, we will propose an action plan.
As you can imagine, the foundation and all of our employees also had exposure to these assets.
Multichain’s Fantom Bridge was exploited for at least $126 million as malicious actors were able to steal a number of coins, including crypto-assets such as Chainlink (LINK), Wrapped Bitcoin (wBTC), Wrapped Ethereum (wETH), and a trio of stablecoins.
According to market analysis tool DefiLlama, Fantom’s total value locked (TVL) has dropped dramatically, from $200 million before the incident to $67 million today.
Multichain has since Closed his activities and said the CEO was arrested by Chinese authorities in May and has had no contact with the blockchain team since then.
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