The Fantom bridge's Ethereum smart contract saw the withdrawal of 7,214 Wrapped Ether (WETH) tokens worth $13.6 million, 1,024 Wrapped Bitcoin (WBTC) worth $31 million, and $58 million worth of USD Coin (USDC). Similarly, the Dogechain bridge's Ethereum contract witnessed a withdrawal of $666,000, accounting for over 86% of its total deposits, leaving only a fraction of assets remaining. The Moonriver bridge contracts on Ethereum experienced withdrawals amounting to $5,872,661 worth of USDC and USDT, leaving a meager $700,000 behind.

Speculation on Twitter has emerged, with some labeling these events as a potential exploit. PeckShield, a blockchain security firm, raised concerns by tagging the Multichain team in a post showcasing the transactions on the Fantom bridge. On-chain investigator Spreek also posted about the Dogechain transactions, referring to the situation as "dogechain multichain drained."

However, it should be noted that at the time of publication, Cointelegraph was unable to confirm whether these contracts were truly drained or if the withdrawals were simply a result of users' actions. Despite reaching out to the Multichain team on their Discord channel, Cointelegraph did not receive a response.

In a subsequent tweet, Multichain acknowledged the abnormal nature of the movements and stated that they are uncertain about the cause, emphasizing that they are actively investigating the situation.

Multichain's MPC bridging network operates by confirming asset lockings on the originating chain and then minting derivative assets on the destination chain. Withdrawals follow a reverse process, verifying the destruction of derivative coins on the destination chain before releasing the corresponding assets on the originating chain. The Multichain team claims that this process is safeguarded by cryptographic keys split into multiple shards distributed across the network, theoretically preventing unauthorized withdrawals by any single entity.

Adding to the concerns surrounding Multichain, the network has faced unspecified technical problems in recent weeks. On May 31, the team announced that their CEO had gone missing, and they were dealing with multiple issues due to unforeseeable circumstances, resulting in delayed transactions. More recently, on July 5, Binance suspended withdrawals of certain Multichain derivative tokens due to the network's failure to process transactions promptly.

As we embark on our exploration of the Multichain ecosystem, our dashboard will closely analyze the activities spanning across various available chains, including Arbitrum, Avalanche, Binance Smart Chain (BSC), Ethereum, Optimism, and Polygon. Our focus will extend beyond recent events to encompass the broader Multichain network's performance over the past week. Additionally, we will closely track the evolution of the MULTI token, providing you with comprehensive insights and analysis of its market dynamics and potential implications.

Over the past few days, there has been a series of concerning developments that have raised fears of a potential exploit, resulting in abnormally large outflows from the Multichain MPC bridge platform.

On July 6, observers noticed substantial withdrawals from Multichain's Fantom bridge on the Ethereum side, amounting to approximately $102 million worth of cryptocurrency. Additionally, withdrawals of $666,000 from Dogechain and $5 million from Moonriver were observed on the same day. These significant movements of funds have caught the attention of the crypto community 1.