Binance Suspends Deposit for Bridged Tokens

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Key takeaways: 

  • Due to problems with the Multichain bridge project, Binance momentarily stopped accepting deposits for 10 crypto tokens.
  • Without an apparent justification, transactions on the Multichain protocol have been delayed across a number of cross-chain bridges.

Cryptocurrency exchange Binance recently made headlines as it temporarily suspended multichain token deposits due to transaction delays. This move has raised concerns among users and sparked discussions about the challenges faced by cryptocurrency exchanges in managing the increasing demand and maintaining smooth operations.

The Multichain (MULTI) protocol faced doubt after days of delayed transactions, which led Binance to halt deposits for 10 bridging tokens on May 25. 

Polkastarter (POLS), AlpacaToken (ALPACA), (AVA), Spell (SPELL), Fantom (FTM), Alchemy (ACH), Beefy (BIFI), SuperVerse (SUPER), Harvest Finance (FARM), and DeXe (DEXE) are among the token pairs that are affected. Users of bridged tokens on the BNB Smart Chain, Fantom, Ethereum, and Avalanche blockchain networks will be impacted by the change.

As per Binance, the decision to suspend transfers of wrapped tokens from the Multichain bridge is driven by a commitment to maintaining the highest level of security and protecting user assets.

 The exchange has identified potential issues related to the processing and security of these transfers, and the temporary suspension allows them to thoroughly investigate and resolve these concerns. By proactively addressing any vulnerabilities, Binance aims to ensure the long-term stability and security of its platform.

The Multichain initiative first blamed the incident on technological difficulties. However, when user resentment grew, the justification was changed to an ambiguous “force majeure.”

According to some Multichain users, money has been stuck in transit for three days. Rumours are spreading that members of the Multichain team may have been detained by Chinese officials, significantly worsening the situation for the protocol.

Yesterday, the Multichain team took to Twitter to inform users that pending transactions would be credited automatically. They also mentioned that they were working on developing a compensation plan for users who were affected by the temporary suspension of wrapped token transfers from the Multichain bridge. 

Additionally, DJ Qian, the co-founder of Multichain, stated this morning that he was engaged in discussions with the CEO of the bridging project to find a resolution to the issue. The team and its co-founder are actively addressing the concerns and working towards resolving the situation for affected users.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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