December 9, 2023

Binance no longer supports deposits and withdrawals of multiple cross-chain bridge tokens related to multi-chain projects.

Binance suspends multi-chain support

In a recent development, Binance, one of the world’s largest cryptocurrency exchanges, announced that it will end withdrawal and deposit support for several multi-chain bridge tokens. From July 7th, customers on networks such as BNB Smart Chain, Fantom, Ethereum, and Avalanche will not be able to deposit or withdraw bridge tokens until further notice.

It should be noted 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 participate in transactions using the various tokens available on the exchange.

Some of the tokens affected by this decision include Polkastarter (POLS), Alchemy Pay (ACH), Beefy.Finance (BIFI), Harvest Finance (FARM), tokens minted via the Fantom bridge such as Beefy.Finance (BIFI) and Alpaca Finance (ALPACA), and Travala (AVA), a token minted on the Ethereum bridge.

Binance keeps funds safe

Multichain is a cross-chain interoperability protocol. It enables the seamless transfer of assets between different blockchain networks and currently manages more than $1.3 billion in assets, of which $698 million is minted on Ethereum, $339 million is minted on the BNB smart chain, and $92 million is minted on Cast on Fantom.

However, Binance will not take risks when it comes to protecting user funds. While the team has assured clients that funds remain safe, the uncertainty surrounding the matter worries users whose funds are trapped in the protocol.

A spokesperson for Binance said the temporary suspension of these services on the Binance platform is only a temporary risk management measure. Users can still trade tokens on Binance and withdraw tokens using alternative networks. This means that as long as the asset does not involve the Multichain project, it can proceed normally.

Multi-chain complexity

Although the team did not specify the exact reason behind this decision, it was implied that it was a response to the agreement difficulty That happened in May. During this time, the project experienced transaction difficulties processing bridge transfers. Several other paths for Kava, zkSync, Polygon zkEVM, and cross-chain bridges are not functioning properly.

Multichain CEO Zhaojun He could not be reached either, and he is rumored to be in police custody. As a result, Binance suspended deposits for multi-chain bridge tokens on May 25, citing protocol complexity. The latest suspension is just a follow-up to previous actions against Multichain.

In conclusion, Binance’s decision to suspend the transfer of multiple tokens related to Multichain is a proactive measure to ensure the safety and stability of users’ funds. Users are advised to keep abreast of the situation through official channels and wait for further updates from the exchange.

Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.