Recently, Miltichain experienced a wave of hacks that resulted in the theft of over $200 million worth of crypto. The situation had a monumental impact on the performance of the Fantom platform. One of the founders of the platform expresses his dismay on this subject.
Fantom co-founder talks about his disappointment with the Multichain hack
Multichain-related fund theft has dealt a major blow to smart contract firm Fantom. This notably led to a sharp drop in operations on the platform. This was recently indicated by Andre Cronje, co-founder of the company specializing in DeFi-related services.
Figures from crypto data provider DefiLlama show a drop in Fantom’s Total Locked Value (TVL). The latter went from more than $364 million at the beginning of May to around $70 million in mid-July. This, after reaching a peak of $7.5 billion in 2022.
DefiLlama further reports the tumble in the price of the native token, Fantom (FTM), since the incident. The valuation of the asset thus went from $0.41 to $0.28 over the same period.
The manager shared his disappointment with Multichain. According to him, the Multichain team had nevertheless provided guarantees as to the decentralized nature of its servers. She had also assured that there were no concerns regarding the access and distribution of geolocation.
On Friday July 14, Multichain announced the cessation of its activities. An interruption following the arrest in May of its CEO, who exercised exclusive control over the servers. Since his arrest, it is almost impossible for the project to function normally.
“The exploit was possible because Multichain stored all fragments of its private keys in a cloud server account, controlled only by its CEO. Someone gained access to this account and drained protocol funds, leading to the subsequent fallout,” explained the co-founder of Fantom.
A few days ago, stablecoin issuers Circle and Tether froze more than $65 million in assets related to the attack. Fantom is currently working with both parties to recover the affected assets.
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