DeFi

Multichain crypto bridge owes Fantom $2M for exploit – DL News

Published

7 months ago

8 July, 2024

Multichain crypto bridge owes Fantom $2M for exploit – DL News

Crypto bridge Multichain suffered a mysterious $125 million exploit last year.
A Singapore court has ruled that Multichain owes the Fantom Foundation nearly $2.2 million.
The foundation believes the judgment could lead to the appointment of a liquidator and the restitution of stolen property.

A court ruling in Singapore could pave the way for the eventual return of tokens that were stolen when the Multichain crypto bridge suffered a mysterious exploit last July.

Mohamed Faizal, Judicial Commissioner of the High Court of Singapore governed As of Monday, Multichain owes the Fantom Foundation, the organization that manages the Fantom blockchain, nearly $2.2 million.

That’s the amount the foundation said it lost in the July 2023 exploit.

“While this judgment only addresses Fantom’s losses, the purpose of the Foundation’s litigation was to cause the liquidation of Multichain and the court’s appointment of a third-party liquidator—which the Fantom Foundation will partially fund—to help recover and distribute missing or frozen assets for all parties affected by the Multichain exploit,” the Fantom Foundation said in a statement. statement.

According to Faizal, Multichain did not attempt to defend itself during the proceedings.

An inside job?

Bridges are software programs that allow users to move cryptocurrencies between otherwise incompatible blockchains. A user on one blockchain deposits cryptocurrencies onto the bridge, which then generates new tokens on a per-block basis on a different blockchain.

On July 7, 2023, after weeks of technical issuesMultichain, which was once valued at over $1 billion, has experienced what it called abnormal fund movements: About $125 million in cryptocurrencies had been withdrawn from its wallets. This left the assets linked to Fantom effectively uncollateralized, causing their value to plummet.

Crypto value in Fantom’s DeFi ecosystem plummeted after Multichain exploit.

About a week later, Multichian posted a shocking statement:Zhaojun He, the company’s founder, had been detained by Chinese police since May. His “computers, phones, e-wallets and mnemonic phrases were confiscated by authorities,” the statement said.

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Moreover, despite Multichain’s assurances that the company was decentralized, control rested solely with Zhaojun. The company was going to have to close.

Disheartened Multichain users have organized on the messaging app Telegram, trading theories about where their money is going.

For some, the Multichain story was a warning about operational security failure and running a business in a crypto-hostile police state.

Others questioned the company’s story and speculated that the “hack” was actually an inside job.

The Fantom Foundation was among the entities that had deposited tokens on Multichain. CEO Michael Kong hired a leading law firm in China to find out what happened to the company.

In an interview last July, Kong said DL News that Multichain may have been the victim of a racket by local police, and he dismissed speculation that Zhaojun had absconded with the money.

“There’s no real motive for this,” Kong said. “The Multichain team was running what many people considered to be a completely legitimate project.”

This assessment has changed.

Singapore Decision

In his ruling, Faizal noted that the Fantom Foundation had sued two entities: Multichain Foundation Ltd, which ran the crypto bridge, and Multichain Pte Ltd.

This is because of the “sudden incorporation” of Multichain Pte Ltd “just before the July 7 security breach” and the foundation’s “belief that the siphoned assets could have been illegally diverted” to the entity, Faizal wrote.

But the Commissioner made it clear that this allegation fell outside the scope of his decision.

“I do not comment on the merits of these claims regarding the involvement of [Multichain Foundation] And [Multichain Pte]”I am not convinced of the validity of these claims,” he wrote.

In January, the Fantom Foundation won its case against Multichain. But it still had to prove the amount of its losses and prove that those losses were attributable to fraud within Multichain.

The foundation argued that the loss was only possible because Zhaojun had complete control of Multichain.

Faizal noted that Multichain had “admitted this” to X, formerly Twitter.

“This contravened what the [foundation] claims to be the key term of the user agreement, which stipulated that the multichain bridge was controlled by a safe and secure decentralized system [multi-party computation] “Nodes that cannot be controlled by one person,” Faizal said.

According to Faizal, the Fantom Foundation has provided a conservative estimate of the amount lost in the exploit.

The foundation presented the court’s decision as a victory for those who lost money when the bridge was closed last year.

“We will continue to pursue the matter until a liquidator is appointed, which is expected to happen in the coming months, and we will pass on all our knowledge and investigative material to the liquidator to facilitate and support his recovery efforts,” the Fantom Foundation said in its statement.

“The liquidator will then carry out an independent valuation of the assets, followed by the processes of claim, recovery and distribution.”

Aleks Gilbert is DL News” DeFi correspondent based in New York. You can contact him at aleks@dlnews.com.

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DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

Website: https://presale.rollblock.io/

Social networks: https://linktr.ee/rollblockcasino

No spam, no lies, only insights. You can unsubscribe at any time.

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their own due diligence before making any high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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