The crypto industry was put on high alert on May 24, 2023, when Multichain — one of the largest cross-chain bridge protocols — experienced a cascade of failures that left users unable to withdraw funds and sent its native token MULTI plunging over 24 percent in a single day. The incident serves as a stark reminder that bridge protocols remain one of the most dangerous attack surfaces in decentralized finance.
The Threat Landscape
Multichain, which connects 83 public blockchains and supports over 3,400 cross-chain assets with total liquidity exceeding $1.8 billion, began experiencing severe delays on May 23-24. Users reported transactions stuck for up to 72 hours. The team attributed some route suspensions to “force majeure,” while rumors swirled about the possible arrest of the Multichain team by Chinese authorities. The MULTI token crashed from $7.09 to $5.39 within 24 hours — a 24 percent decline driven by panic selling.
The Fantom Foundation removed approximately 450,000 MULTI tokens worth $2.4 million from liquidity on SushiSwap. One whale deposited 494,200 MULTI valued at $2.75 million to Gate.io. Hashkey transferred $247,000 worth of MULTI to the same exchange. The signs of institutional flight were unmistakable.
By May 25, Binance suspended deposits for eleven Multichain-bridged tokens across multiple networks, including POLS-BSC, ACH-BSC, BIFI-FTM, SUPER-BSC, AVA-ETH, SPELL-AVAXC, ALPACA-FTM, FTM-ETH, FARM-BSC, and DEXE-BSC. This was not a drill — one of crypto’s most important infrastructure providers was effectively signaling that Multichain’s bridges could no longer be trusted.
Core Principles
Bridge security fundamentally depends on how assets are locked, verified, and released across chains. Most bridges, including Multichain, use a mint-and-lock mechanism: tokens are locked on the source chain and an equivalent amount is minted on the destination chain. If the locking mechanism is compromised — whether through a smart contract vulnerability, a compromised private key, or operational failure — the entire system breaks down.
The core principles for evaluating bridge safety are: transparency of the validator set, frequency and quality of security audits, timelock mechanisms on critical operations, and the team’s operational security practices. Multichain’s crisis exposed weaknesses on multiple fronts — particularly the centralized nature of its validator operations and the opacity surrounding team management.
Tooling & Setup
For users and developers seeking to minimize bridge risk, several tools and practices are essential. First, always verify the bridge’s total value locked and compare it against the amount you intend to transfer. Never bridge more than you can afford to lose. Use established bridges with multiple independent validators rather than those relying on a single entity or a small multisig.
Tools like DeFiLlama provide real-time TVL data for all major bridges. Revoke.cash allows you to manage and revoke token approvals. Wallets like Ledger or Trezor provide hardware-level security for signing bridge transactions. On-chain monitoring tools like Forta and OpenZeppelin Defender can alert developers to suspicious bridge activity in real time.
Ongoing Vigilance
The Multichain situation demonstrates that bridge risks are not limited to direct hacking. Operational failures, regulatory action against team members, and even rumors can trigger cascading effects that freeze user funds. The protocol’s use of the term “force majeure” — a legal concept typically reserved for extraordinary circumstances beyond anyone’s control — only amplified community fears.
With Bitcoin trading at $26,335 and Ethereum at $1,800 on this day, the broader market was already under pressure from the U.S. debt ceiling standoff. The Multichain crisis added fuel to the fire, contributing to a risk-off environment across DeFi tokens.
Final Takeaway
Bridge protocols are the connective tissue of the multi-chain ecosystem, but they are also its most vulnerable point. The Multichain crisis of May 2023 should serve as a permanent reminder: always diversify your bridge exposure, never keep funds bridged longer than necessary, and maintain a healthy skepticism toward any protocol that cannot transparently explain its operational status. The next bridge crisis is not a question of if, but when.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research before using any cryptocurrency bridge protocol.
83 blockchains connected and nobody thought about what happens when the team goes dark. $1.8B in liquidity and the backup plan was force majeure lol
force majeure in crypto is code for we lost control and our legal team told us to say this. $1.8B in liquidity with no redundancy plan
The Fantom Foundation pulling $2.4M in MULTI from SushiSwap liquidity right when things got sketchy tells you everything about how insiders handle risk vs retail
bridges are where money goes to die. ronin, wormhole, nomad, now multichain. the pattern is obvious
^ this. every bridge hack follows the same script. massive TVL, centralized keys, zero accountability when it blows up
wormhole, nomad, ronin, multichain. the bridge body count keeps growing and people still yolo funds across chains without checking security
72 hours stuck transactions with no communication. people had funds in limbo and the team tweets force majeure. unreal