Binance, a leading cryptocurrency exchange, has temporarily suspended deposits for 10 tokens due to ongoing issues with the Multichain bridge project. The suspension affects users of these bridged tokens on BNB Smart Chain, Fantom, Ethereum and Avalanche blockchain networks.
The decision comes after Multichain users have been experiencing delays and outages in processing transactions for several days. Several of Multichain’s cross-chain bridge pathways are still not yet operational.
The Multichain project has attributed the problems to technical issues and “force majeure.” However, the lack of clarity from the project has led to concerns among users and investors.
In a separate development, the Fantom Foundation withdrew 450,000 MULTI tokens ($2.4 million) from liquidity on the decentralized exchange SushiSwap.
Yesterday, crypto investment firm HashKey Group moved $250,000 to the crypto exchange Gate.io, and Tron founder Justin Sun withdrew 470,000 of the USDD stablecoin from the Multichain protocol itself.
The Multichain team has not yet provided an update on when the issues will be resolved. In the meantime, Binance has advised users to “refrain from depositing any of the affected tokens” until further notice.
The suspension of deposits by Binance is a significant development and could have a knock-on effect on the wider cryptocurrency market.
Multichain is a popular cross-chain bridge protocol and the problems it is experiencing could raise concerns about the security and reliability of the decentralized finance (DeFi) ecosystem.
Mohammad Ali is a fintech and cryptocurrency writer who has been covering the intersection of finance and technology for several years. Ali has a deep understanding of the financial industry and the ways in which technology is changing it, with a special focus on the rise of digital currencies and blockchain technology.
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