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Binance no longer supports deposits and withdrawals for several cross-chain bridge tokens linked with the Multichain project.
Binance Suspends Multichain Support
In a recent development, Binance, one of the world's largest cryptocurrency exchanges, has announced that it is ending support for withdrawal and deposit for several Multichain-bridged tokens. From July 7 onwards, customers on networks like BNB Smart Chain, Fantom, Ethereum, and Avalanche will be unable to deposit or withdraw bridged tokens until further notice.
It is important to note that the suspension only applies to specific tokens bridged to Multichain and does not affect the trading of other cryptocurrencies on Binance. Users can still trade and engage in transactions with the wide range of tokens available on the exchange.
Some of the tokens affected by this decision are Polkastarter (POLS), Alchemy Pay (ACH), Beefy.Finance (BIFI), Harvest Finance (FARM), tokens minted through the bridge on Fantom, like Beefy.Finance (BIFI) and Alpaca Finance (ALPACA), and a token minted on Ethereum’s bridge, Travala (AVA).
Binance Assures Funds Safety
Multichain is a cross-chain interoperability protocol. It enables the seamless transfer of assets between different blockchain networks and currently oversees over $1.3 billion in assets, with $698 million minted on Ethereum, $339 million minted on BNB Smart Chain, and $92 million on Fantom.
However, Binance is taking no chances when it comes to safeguarding user funds. Although the team has assured customers that funds remain secure, the uncertainty around the matter is worrying users whose funds are stuck in the protocol.
According to a Binance spokesperson, the temporary suspension of these services on the Binance platform is only a temporary risk management measure. Users can still trade the tokens on Binance and withdraw them using alternative networks. This means that as long as the assets do not involve the Multichain project, they can proceed as normal.
The Multichain Complication
Although the team has not specified the exact reason behind this decision, it is implied that it is in response to the protocol’s difficulties that occurred in May. During that period, the project experienced transactional difficulties with processing bridge transfers. Kava, zkSync, Polygon zkEVM, and several other pathways of the cross-chain bridge were not functioning properly.
Multichain CEO Zhaojun was also unreachable and rumored to be taken into police custody. As a result, Binance suspended deposits for Multichain-bridged tokens on May 25, citing complications within the protocol. The recent suspension is just a follow-up to the previous action against Multichain.
In conclusion, Binance's decision to suspend transfers of several tokens tied to Multichain is a proactive measure to ensure the security and stability of its users' funds. Users are advised to stay informed through official channels and await further updates from the exchange.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.