Multichain recuperates $2.6 million in stolen funds on the condition that losses be reimbursed

Multichain, a cross-chain router protocol, announced the recovery of approximately half of the total stolen money, worth nearly $2.6 million in cryptocurrency, after a month-long struggle against a continuing attack. The team has also announced a compensation scheme to compensate users for their losses.

The cross-chain routing protocol was able to retrieve roughly half of the total stolen cash and design a compensation scheme for those who were qualified.

Dedaub, a blockchain security expert, notified Multichain on Jan. 10 about two vulnerabilities in its liquidity pool and router contracts, which impact eight cryptocurrencies like wrapped ETH (WETH), wrapped BNB (WBNB), Polygon (MATIC) and Avalanche (AVAX).

The Multichain team encouraged users to cancel authorization for the susceptible smart contracts a week later, on Jan. 18, as a form of quick damage management. However, the warning notice prompted other hackers to try the vulnerability, resulting in losses of more than $3 million.

The liquidity pool’s vulnerability was resolved, according to Multichain, by updating the impacted coins’ liquidity to new contracts.

As of Feb. 18, 4,861 of the 7,962 impacted customers had withdrawn their authorization, with the other 3,101 addresses being advised to do so as quickly as possible. The team was able to retrieve 912.7984 WETH and 125 AVAX (valued almost $2.55 million and $10,000, respectively) out of the 1,889.6612 WETH and 833.4191 AVAX stolen monies.

“However, despite our best efforts, 976.8628 WETH has been stolen,” Multichain revealed. Multichain has invited users to rescind their permission and submit a ticket on the website in order to be eligible for compensation through refund of damages. “As a result, from February 18 at 24:00 UTC, we will no longer compensate any losses.”

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