MultiChain Hacker Returned 259 ETH To The Platform Report

The Multichain hacker returned 259 ETH to the platform after it suffered a million-dollar attack from malicious entities. However, one white hat hacker returned $813,000 worth of ETH as we can see more today in our latest Ethereum news.

The users of the cross-chain protocol were affected by an unsolved security vulnerability that appeared earlier this week and the platform failed to act. Later on, Multichain revealed that one whitehat hacker returned 259 ETH which was worth $813,000. it all started when Multichain announced the existence of a flaw that made a few accounts vulnerable to malicious entities. The team behind the protocol urged the users to revoke the approvals for six tokens like MATIC, AVAX, WBNB, OMT, PERI, and EITH in order to protect the asset with an action that prompted hackers to rush in and to exploit the vulnerability.

Three hackers drained about $1.9 million worth of Ether according to MultiChain but the co-founder of ZenGo Tal Be’Ery estimated that the total stolen amount crossed $3 million. One of the hackers swiped $1.43 million from the users that didn’t update their approvals and another hacker even offered to return 80% and kept the $150,000 as a tip. One of the victims that lost $960,000 in the exploit negotiated with the hacker by offering a reward of 50 ETH to the address in return for the funds.

The users were quite confused but one tweet from Multichain said that the funds are safe even when the exploit was underway. A few other victims urged Multichain to compensate and accused the scammer of trying to impersonate the company and steal more funds. The bug was reported initially by Defi security company Dedaub but Multichain claimed to have fixed it. Multichain is a cross-blockchain router protocol that enables users to swap and exchange digital tokens across the chain and it dramatically slashes fees by streamlining the entire process. The company secured $60 million in a seed funding round led by Binance Labs.

4. Send onchain alert message to affected addresses
5. Alert banners go live at Etherscan, Polygonscan, BSCscan
6. 24/7 support service at our Help Center (submit ticket: https://https://t.co/fxuPlNLXLh)

— Multichain (Previously Anyswap) (@MultichainOrg) January 20, 2022

The latest breach came on the heels of Crypto.com which also admitted to an exploit where the hackers stole $30 million. The exchange announced suspending the withdrawals after a slew of complaints from the users who claimed that their funds disappeared but it wasn’t until a few days ago that the company officially acknowledged breaching after being accused of vague communication.