Multichain pledges to compensate users after 'force majeure' incident

Quick Take

  • Multichain promised to compensate users that are being affected by a “force majeure” that has left some cross-chain routes unavailable.
  • “The time for service to resume is unknown,” the company said Wednesday.

Multichain, a cross-chain protocol, promised to compensate users that are being affected by a "force majeure" that has left some cross-chain routes unavailable.

"The time for service to resume is unknown," the Multichain team said in a post on Twitter, adding that most cross-chain routes were still functioning well. "After service is restored, pending transactions will be credited automatically."

The team said it would announce details of the compensation plan at a later date. It first acknowledged the problem in an operational update yesterday when it said an upgrade to a back-end node was taking longer than expected. 

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Some users have been complaining about stuck transactions since as early as May 21, The Block reported earlier. Multichain's MULTI token has fallen 23.6%  over the past day to $5.41, according to data from CoinGecko.

The issues have led to at least three large crypto entities taking action in response, with Fantom Foundation withdrawing $2.4 million in liquidity of the protocol's native MULTI tokens on the decentralized exchange SushiSwap. Chinese crypto investment firm HashKey Group moved $250,000 to crypto exchange Gate.io, while Tron founder Justin Sun withdrew 470,000 USDD, a stablecoin, from the protocol itself.


© 2023 The Block. All Rights Reserved. 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.

About Author

Nathan Crooks is the U.S managing editor at The Block, based in Miami. He was previously at Bloomberg News for 12 years, where he helmed coverage of South Florida after roles as a breaking news editor and bureau chief in Caracas, Venezuela. He's interviewed presidents, government ministers and CEOs, and, besides crypto, has covered major news events on the ground from earthquakes to hurricanes to the Chilean mine rescue in 2018. Nathan, a native of Clarion, Pennsylvania, holds a bachelor's degree from the University of Toronto, where he completed a specialist in political science, and an MBA from American University in Washington, D.C.

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