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Multichain Hack Forces Permanent Closure of Crypto Lender Geist Finance

Multichain Hack Forces Permanent Closure of Crypto Lender Geist Finance

It is unfortunate to hear that Geist Finance, a lending platform running on the Fantom network, is permanently shutting down due to losses from the Multichain exploit. The platform had over $29 million worth of crypto assets locked in its contracts before the hack.

Geist allowed users to borrow, lend, or use bridged tokens from the Multichain platform as collateral. However, after the hack, the Chainlink oracles used by Geist stopped producing reliable information and began listing the values of the non-bridged versions of each coin, which are significantly higher than their Multichain derivatives.

This discrepancy in asset values makes it impossible for Geist to reopen lending, as it would result in bad debt for holders of non-Multichain coins. The team clarified that they are not blaming Chainlink oracles for the closure but rather hold Multichain responsible.

The Multichain hack was first reported on July 7, with over $100 million withdrawn from the Ethereum side of Multichain bridges. The Multichain team confirmed the hack on July 14, revealing that the CEO’s cloud server account, holding all shards of the private keys, was accessed by an unknown individual.

In an attempt to recover funds, a fee-based attack was initiated by the CEO’s sister at the behest of the Multichain team. However, she was later arrested, and the status of the assets she recovered remains uncertain.

Summary:

– Geist Finance, a lending platform on Fantom network, is permanently shutting down due to losses from the Multichain exploit.

– Chainlink oracles used by Geist stopped producing reliable information after the hack.

– Geist cannot reopen lending due to the discrepancy in asset values.

– Multichain hack resulted in over $100 million being withdrawn from Ethereum side of Multichain bridges.

– CEO’s cloud server account holding private keys was accessed by an unknown individual.

– Fee-based attack initiated by CEO’s sister in an attempt to recover funds, but she was later arrested.