More than $120 million worth of assets belonging to a cryptocurrency firm have reportedly been moved to an unknown address, weeks after the company’s CEO went missing. Multichain, a cross-channel router, announced in early May that it was unable to reach its CEO. This development has led to speculation on Twitter about a potential hacking of Multichain wallets.
According to Bloomberg, Multichain recently disclosed the abnormal transfer of its lockup assets to an unknown address. The company is currently investigating the incident and has advised its customers to suspend their use of the platform.
In response to Multichain’s tweet, MetaSleuth, a crypto funds visualization and analysis company, pointed out that Multichain’s tokens have been divided among six different crypto addresses. Additionally, approximately $1.8 million worth of one of Multichain’s tokens, ICE, has been burned.
Following this news, several Twitter users suggested that Multichain may have fallen victim to a hack, as reported by CoinTelegraph. However, Multichain has yet to provide a comment in response to inquiries.
This situation marks yet another challenge for Multichain, which was already grappling with difficulties in reaching its CEO, Zhaojun, in late May. The company stated in a tweet that it had made every effort to maintain its protocol, but was currently unable to contact Zhaojun or obtain necessary server access for maintenance.
This incident reflects the risks and drawbacks associated with cryptocurrency investing. However, digital assets like Bitcoin also offer the potential for significant returns. Bitcoin has surged by approximately 80% this year, surpassing $30,000. This growth can be attributed in part to BlackRock’s recent application to launch its first spot bitcoin exchange-traded fund.
It is important for investors to consider the risks involved in the cryptocurrency market, as cybersecurity threats continue to pose challenges. Notably, Binance, the world’s largest crypto exchange, experienced a $100 million hack in October 2020 as a result of an exploit on a cross-chain bridge.
In conclusion, the movement of more than $120 million worth of assets to an unknown address by Multichain, in conjunction with the company’s CEO being unresponsive, has led to speculation about a potential hacking incident. Multichain is currently investigating the situation, which serves as a reminder of the risks associated with cryptocurrency investing.
