Multichain Recovers $2.6M Stolen Funds See Why

Multichain has recovered $2.6M stolen funds, and planned to reimburse losses on condition

Multichain announced the recovery of nearly 50% of the total stolen funds, worth nearly $2.6 million of cryptocurrencies.

This happened after a month-long fight against an ongoing exploit, cross-chain router protocol .

RELATED: Multichain Under Fire From Users As Hacking Losses Grow To $3M

The team has also announced a compensation plan to compensate users for their losses.

Dedaub, a blockchain security expert, notified Multichain on Jan.10 about two vulnerabilities in its liquidity pool and router contracts.

Which affect eight cryptocurrencies including wrapped ETH (WETH), wrapped BNB (WBNB), Polygon (MATIC), and Avalanche (AVAX).

1/3 We recently identified the "phantom functions" code pattern, which would have led to likely the largest crypto hack ever.

Your code may be vulnerable! You need to check for the pattern in your Solidity/EVM code! https://t.co/pxRqCQFbnS

— Dedaub (@dedaub) January 27, 2022

The Multichain team recommended users to cancel authorization for the susceptible smart contracts a week later, on January 18, as a form of quick damage management.

However, as reported by Cointelegraph, the warning notice prompted other hackers to try the vulnerability, resulting in losses of more than $3 million.

The liquidity pool’s vulnerability was fixed, according to Multichain, by updating the impacted coins’ liquidity to new contracts, adding:

“However, the risk remains for the users who have yet to revoke approvals for the affected router contracts.”

“Importantly, users themselves have to be the ones to revoke the approvals.”

Daily attack sum. Source @Dune Analytics

As of Feb. 18, Multichain reported that 4,861 out of the 7,962 affected users have revoked approvals.

While advising the remaining 3,101 addresses to take action as soon as possible.

Out of the 1,889.6612 WETH and 833.4191 AVAX stolen funds.

The team was able to recover 912.7984 WETH and 125 AVAX (worth nearly $2.55 million and $10,000 respectively).

“However, in spite of our best efforts, a total of 976.8628 WETH has been stolen,” Confirmed Multichain.

“To be eligible for compensation through reimbursement of losses.”

“Multichain has asked users to revoked their approval and submit a ticket on the website.”

“As such, we will no longer reimburse any losses that happen after February 18 24:00 UTC.”

Netflix will soon produce and launch a documentary series circled around a New York-based couple and their involvement in laundering Bitcoin (BTC) linked to the Bitfinex hack.

iexclusivenews gathered that the documentary will be directed by American filmmaker Chris Smith with Nick Bilton as the co-executive producer. The announcement read:

“Netflix has ordered a documentary series about a married couple’s alleged scheme to launder billions of dollars worth of stolen cryptocurrency in the biggest criminal financial crime case in history.”