Binance will suspend support for Multichain-related coins

CFTC files lawsuit against Binance and Changpeng Zhao
CFTC files lawsuit against Binance and Changpeng Zhao

Cryptocurrency exchange Binance will suspend support for the deposit and withdrawal of multiple tokens from July 7 following the May incident with the Multichain cross-chain project.

The lock affected coins created by the problematic protocol on various networks:

  • Polkastarter (POLS) on BNB Chain;
  • Alchemy Pay (ACH) on BNB Chain;
  • SuperVerse (SUPER) on BNB Chain;
  • Harvest Finance (FARM) on BNB Chain;
  • Travala (AVA) on Ethereum;
  • Spell Token (SPELL) on Avalanche;
  • Beefy.Finance (BIFI) on Fantom Network;
  • Alpaca Finance (ALPACA) on Fantom Network.

Binance did not elaborate on the reason for its decision. It will be valid until the next notification of the trading platform.

The company representatives added that users can still deposit and withdraw the affected tokens through other networks supported by the exchange.

According to DeFi Llama, at the time of writing, the total amount of funds blocked in Multichain is $1.3 billion, of which $698 million is in Ethereum, $339 million is in BNB Chain, and $92 million is in Fantom.

Multichain had its first technical problems on May 21st. Users complained about transactions stuck in the blockchain due to an error during the network upgrade.

Amid the disruption, the Binance cryptocurrency exchange has been forced to suspend deposits in POLS, ACH, BIFI, SUPER, AVA, SPELL, ALPACA, FTM, FARM, and DEXE tokens.

The developers of the cross-chain protocol promised compensation to users affected by the “force majeure”. Despite the ongoing uncertainty around the project, a few days later, MULTI quotes jumped by 36%.

Recall that in early June, Vice President of Multichain Tung Din announced the resumption of work of the gateway bridge Router 2, due to which problems arose.

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