The July 2023 Multichain hack that drained $126 million from cross-chain bridges shocked the cryptocurrency community and left many users wondering: is it safe to move assets between blockchains? With Bitcoin at approximately $30,295 and Ethereum trading near $1,931, the crypto market was showing signs of recovery — but the Multichain exploit served as a painful reminder that bridging assets between chains carries real risks. This guide breaks down what happened and how you can protect yourself.
The Basics
A cross-chain bridge is a protocol that allows you to transfer tokens from one blockchain to another. When you bridge assets, the protocol typically locks your tokens on the source chain and issues equivalent “wrapped” tokens on the destination chain. For example, if you bridge Ethereum to Fantom, your ETH gets locked in a smart contract and you receive wrapped ETH on Fantom.
The problem is that bridges concentrate enormous amounts of value in single points of failure. The Multichain bridge on Fantom held millions of dollars in locked assets — making it an attractive target for attackers. When the bridge was compromised, all those locked assets became inaccessible or were stolen outright.
Why It Matters
Cross-chain bridges are essential infrastructure for the cryptocurrency ecosystem. Without them, assets would be trapped on their native chains, limiting the utility of DeFi protocols that operate across multiple blockchains. But the Multichain hack demonstrated that bridge security is not just a technical concern — it directly affects everyday users who simply wanted to move their tokens between chains.
In 2023 alone, bridge exploits accounted for hundreds of millions of dollars in losses. The Multichain incident was particularly damaging because Multichain was one of the most trusted and widely used bridge protocols, supporting connections between dozens of blockchains.
Getting Started Guide
Here are practical steps every crypto user should take to minimize risk when using cross-chain bridges:
1. Research the bridge before using it. Check whether the protocol has undergone security audits by reputable firms. Look for audit reports from companies like Halborn, Trail of Bits, or OpenZeppelin. Bridges without published audits carry significantly higher risk.
2. Don’t bridge more than you can afford to lose. Even well-audited bridges can be compromised. Treat bridging like any other risky DeFi activity and only transfer amounts you’re prepared to lose.
3. Use multiple bridges for large transfers. Instead of moving all your assets through a single bridge, split large transfers across multiple protocols. If one bridge gets compromised, you’ll only lose a portion of your funds.
4. Revoke token approvals after bridging. When you use a bridge, you grant it permission to spend your tokens. After the transfer is complete, revoke that permission using tools like Revoke.cash. Leaving approvals active means a compromised bridge contract could drain your wallet later.
5. Monitor official channels. Follow the bridge protocol’s official social media and Discord channels. If there’s a security incident, these channels are usually the first place updates are posted. Quick action — like revoking approvals or moving assets — can save your funds.
Common Pitfalls
Many users make the mistake of treating all bridges as equally safe. In reality, bridge security varies enormously. Newer bridges with less testing and smaller liquidity are generally riskier than established ones with proven track records. Another common mistake is leaving unlimited token approvals active — always set approval amounts to exactly what you need for the transaction.
Users also often confuse wrapped tokens with native tokens. Wrapped assets on a destination chain are only as safe as the bridge that issued them. If the bridge is compromised, wrapped tokens may lose their peg and become worthless — even though the underlying asset (like Bitcoin or Ethereum) is perfectly fine on its native chain.
Next Steps
After reading this guide, audit your current wallet for any active bridge approvals and revoke any you no longer need. Bookmark Revoke.cash and your most-used bridge protocols’ official communication channels. Consider diversifying your bridging strategy across multiple protocols, and always keep some assets on their native chains as a safety net. The crypto ecosystem needs bridges — but using them wisely is your best defense against becoming the next victim.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research before making any financial decisions.
wish i had this guide before bridging ETH to fantom in june. didnt realize the wrapped tokens were basically unbacked if the bridge got drained. learned that the hard way
wrapped tokens are basically ious. if the bridge goes down your weth on fantom is worth exactly zero. same lesson every time
synth_lock said wrapped tokens are IOUs and thats exactly right. your weth on fantom is only worth what the bridge custodian says it is
0xgatekeeper weth as an IOU is the scariest phrase in crypto. after multichain went down everyone holding wrapped assets on fantom learned this the hard way
synth_lock wrapped tokens as IOUs is exactly right. after multichain i stopped bridging entirely. native assets only or nothing
The explanation of lock-and-mint bridging is clear but should emphasize TVL risk. A bridge with $500M locked is a $500M honeypot. Size matters when choosing which bridges to trust.
^ hard agree on TVL. multichain had how much locked? and it all went poof in one night. the ‘single point of failure’ point in the article cant be stressed enough
exactly. people check token price but never check bridge TVL concentration. one exploit and the whole thing unravels
Elena Vasquez the $500M honeypot point is crucial. people should check bridge TVL before every transfer, not just token price
the Multichain hack was the moment I stopped trusting any bridge that uses a multisig. hardware wallet + native chain only now
anyone know if there is a dashboard tracking which bridges have been independently audited? that should be step one before sending funds anywhere
defillama has a bridges tab with TVL and audit info. problem is most users dont check it. exchanges do KYC, bridges dont do anything
bridge_track defillama bridges tab is great but honestly most users dont even know what TVL means. education is the bottleneck here
bridge_track DeFiLlama bridges tab exists but most users never check it. same people who spend 3 hours researching tokenomics will bridge without checking audit history
the lock-and-mint model is fundamentally broken. you are trusting a multisig to hold billions in locked assets. after Multichain drained $126M everyone should have learned this lesson
the lock-and-mint model is fundamentally flawed because it creates billion dollar honeypots secured by 3 of 5 multisigs. native asset transfers cant come soon enough