Binance Suspends Deposits and Withdrawals for Some Multichain-Bridged Tokens
- Binance said the decision to suspend deposits and withdrawals for these tokens was due to the recent instability witnessed in Multichain.
- Cross-chain bridges are prime targets for crypto hackers due to their poor security infrastructure.
- Almost $1 billion was stolen from cross-chain bridges in 2022.
Crypto exchange Binance announced on Wednesday, July 5, that it would end support for deposits and withdrawals for some Multichain-bridged tokens starting on July 7, 2023. Binance‘s decision to withdraw its support will mostly affect users using bridged tokens on Avalanche, BNB Smart Chain, Ethereum, and Fantom.
Binance listed SuperVerse, Harvest Finance, Polkastarter, Alchemy Pay, Travala.com, Spell Token, Beefy Finance, and Alpaca Finance as some of the affected tokens.
Today’s news comes weeks after Binance announced the suspension of deposits for a number of Multichain-bridged tokens on May 25, 2023, after some delayed transactions raised doubts about the Multichain system.
In its post, Binance apologized for the inconvenience caused by today’s announcement, adding that Multichain’s recent instability necessitated its decision. Binance added that suspending these tokens was a risk management strategy designed to protect customers’ funds from any possible loss.
Multichain hit the spotlight in May after multiple complaints were filed on its Telegram page for delayed transactions. Multichain later confirmed that the reported delay was caused by the unexplained disappearance of its CEO, Zhao Jun, who had sole access to the servers responsible for the delay.
Some social media users believed Jun and other top Mutlichain executives were arrested by the Chinese government. However, there has been no official explanation for his disappearance. The situation with Multichain resumed conversations about the dangers associated with using cross-chain bridges.
Cross-chain bridges are also easy targets for crypto hackers. Reports state that almost a billion dollars were stolen from cross-chain bridges in 2022, showing the poor security infrastructure on some of these platforms.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
