Multichain (MULTI) in crisis: Binance partially cuts the bridge

Nothing is going well at Multichain anymore. Besides the fact of stop allowing transactions, several cross-chain gateways such as zkSync, Kava or Polygon zkEVM are currently out of service on the platform. And to drive the point home, the barons of Multichain continue to maintain the mystery around this crisis. Reason why Binance took drastic action on some affiliate bridged tokens to the protocol.

Case of Multichain: Binance’s intervention

Binance could suffer from the threat of legal action from US regulators, or face charges for financial malfeasance, but Don’t think to throw in the towel right now. And it is in such situations that the most popular crypto exchange in the world decides to clean up.

Thus, in a publication dated May 25, The Block revealed that Binance has suspended deposits for 10 bridged tokens pending explanations from the administrators of Multichain.

” We will be temporarily suspending deposits for the following bridged token network while we await clarification from the Multichain team.

POLS-BSC

ACH-BSC

BIFI-FTM

SUPER-BSC

AVA-ETH

SPELL-AVAXC

ALPACA-FTM

FTM-ETH

FARM-BSC

DEXE-BSC

Deposits of the above assets on other networks are still open. Please refer to our deposits page for more details. »

Causes and consequences of such a decision

As we announced at the beginning of this talk, Multichain is currently undergoing a major technical crisis. Indeed, for almost a week, the platform has made its users unhappy for problems of impossible transactions or inaccessibility to a multitude of cross-chain gateways.

And even worse: Multichain barons fail to come up with valid reasons to explain what is really going on. On Telegram and Discord, no convincing information has been leaked. Hence the speculation of some Twittos that what Multichain CEO Zhaojun Reportedly Arrested in China.

Result: the price of MULTI dropped by 23% on May 25th.

Note also that the Fantom foundation withdrew the equivalent of $2.4 million in MULTI on SushiSwap. Haskey Group also transferred $250,000 to Gate.io. Even Tron boss Justin Sun followed suit by withdrawing $470,000 in USDD from the Multichain protocol.

As for Binance’s decision, it will certainly affect users of bridged tokens from the BNB Smart Chain, Avalanche, Fantom and Ethereum networks. However, it should be mentioned that the deposits of the assets mentioned in the tweet above will not suffer any interruption on the other networks.