Binance suspends deposits of 10 tokens amid Multichain issues

The cryptocurrency exchange Binance has temporarily suspended deposits of bridged tokens POLS, ACH, BIFI, SUPER, AVA, SPELL, ALPACA, FTM, FARM, and DEXE due to issues in the Multichain cross-chain protocol network.

We’ll be temporarily suspending deposits for the following bridged tokens-network while we await clarity from the Multichain team.

POLS-BSC
ACH-BSC
BIFI-FTM
SUPER-BSC
AVA-ETH
SPELL-AVAXC
ALPACA-FTM
FTM-ETH
FARM-BSC
DEXE-BSC

Deposits of the above assets on other networks are…

— Binance (@binance) May 25, 2023

The suspension applies only to the assets issued on the Ethereum, BNB Chain, Avalanche and Fantom networks. Deposits of the same tokens from other blockchains remain open.

Representatives of the platform added that they expect clarification from the Multichain team.

The problem emerged in the protocol on May 21, when users began reporting stalled transactions. The developers stated that the fault occurred during maintenance work on the cross-chain router nodes.

Subsequently, the Multichain team promised compensation to those affected by the “force majeure.” According to the statement, most inter-network routes are operating normally. However, some are still unavailable, and the timing of the resumption of service is unknown.

Against the backdrop of Multichain issues, the native MULTI token fell almost 30%. Then many major investors began withdrawing to sell their assets. One of them sent 494,200 MULTI to the Gate.io exchange (~$2.75 million).

Fantom Foundation also expressed concern and withdrew 450,000 protocol tokens (~$2.4 million) from the liquidity pool on the decentralized exchange SushiSwap.

Andre Cronje, the director of the organization stated, that the foundation withdrew funds for security reasons.

“There is no sense in a liquidity pool in times of uncertainty,” he added.

According to him, the foundation did not sell any MULTI tokens, but merely withdrew them from SushiSwap. The Fantom Foundation is monitoring further developments.

In April, Binance updated the deposit addresses of some users. The company said the move was part of wallet infrastructure improvement.