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Binance will no longer allow affected Multichain-connected tokens on its platform from July 7, according to an announcement.
Binance has announced that it will stop supporting withdrawals and deposits for 8 multi-chain bridged tokens starting Friday. The crypto exchange said the suspension would last until further notice.
The recent cessation follows a previous suspension of the affected tokens due to an issue with the Multichain (MULTI) protocol. On May 25, Binance had previously suspended these tokens because transactions via the Multichain protocol were at a standstill. Many transactions have been blocked, leaving users wondering without a word of protocol.
The affected tokens are Harvest Finance (FARM) via BSC, Travala (AVA) via ETH, Alchemy Pay (ACH) via BSC and Polkastarter (POLS) via BSC. The others are SuperVerse (SUPER) via BSC, Alpaca Finance (ALPACA) via Fantom, Beefy.Finance (BIFI) via Fantom and Spell Token (SPELL) via Avalanche C-Chain.
In a Tweeter on May 24, Multichain revealed, “Some of the inter-chain routes are unavailable due to force majeure, and the service resumption time is unknown.” Multichain also said in the tweet that it will automatically credit pending transactions and compensate all affected users.
Market reactions to the multi-chain problem
At the time, a report said Binance was not the only crypto firm to react to Multichain. Blockchain analytics service Lookonchain reported MULTI outflows of $3 million. Additionally, a Fantom Foundation wallet address removed $2.4 million (449,740) of cash on SushiSwap.
Intelligence firm Arkham Intelligence also confirmed in a Tweeter that the wallets moved about $3 million worth of MULTI tokens to the Gate.io crypto exchange. The move spooked investors and caused MULTI’s price to drop 26.5% in 24 hours. Arkham Intelligence’s tweet also referenced a rumor that authorities in Shanghai had arrested the Multichain team.
Binance’s announcement indicates that all mentioned tokens are still available through other supported networks on the exchange. According to data from CoinGecko, MULTI is trading at $3.13 after losing 6.1% in 24 hours and 7.4% in the past week. MULTI’s 24-hour high is $3.34, with a 7-day high at $3.53.
Binance Multichain suspension is a likely move to protect funds and avoid regulatory attention
The world’s largest cryptocurrency exchange by volume, Binance faces a lot of regulatory stress and is likely acting cautiously with Multichain to avoid further issues. In May, Binance announced that it would suspend access to certain privacy coins in certain European countries to comply with EU regulations. Binance has named XVG, DASH, NAV, MOB and several others, announcing that they will no longer be available in Spain, Poland, Italy and France. However, the exchange chose not to delete the list these tokens by requalifying its assessment of privacy coins.
Away from the EU, Binance is still having issues in Australia. In February, the Australian Securities and Investments Commission (ASIC) began to investigate discussion on the abusive closure of certain accounts. In April, the exchange asked Australian ASIC to revoke its derivatives license granted through a local subsidiary. The revocation meant that Binance had to close all existing derivatives positions by April 21. Since yesterday, ASIC raided Binance Australia office, according to a Bloomberg report.
Tolu is a Lagos-based cryptocurrency and blockchain enthusiast. He likes to demystify crypto stories to the essentials so that anyone, anywhere can understand without too much background knowledge. When not immersed in crypto stories, Tolu loves music, likes to sing, and is a movie buff.
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