Binance Suspends Multichain Token Deposits Amid Transaction Delays

Binance has temporarily suspended transfers of wrapped tokens from the Multichain bridge amid days-long delays in transaction times.

This afternoon, the world’s largest exchange suspended deposits of ten tokens bridged to Binance Chain, Ethereum, Avalanche, and Fantom.

Multichain has deposits worth $1.52 billion locked on it for liquidity provisions, per DeFiLlama. This week’s events caused a slight dip in its total value locked (TVL) from $1.6 billion to $1.52 billion.

“We’ll be temporarily suspending deposits for the following bridged tokens-network while we await clarity from the Multichain team,” wrote Binance.

A Multichain wrapped asset is locked up in a Multi-Party Computation (MPC) node on the source chain, and then a corresponding wrapped asset is minted on the target chain. An MPC node is a digital gateway controlled by specific wallets whose private key is divided, encrypted, and shared between multiple parties.

Users reported issues related to Multichain’s zkSync, Kava, and Polygon zkEVM bridge, where transfers to these networks have been stuck since May 21.

The Multichain team told users via a Twitter post yesterday that “pending transactions will be credited automatically” and that they are forming a compensation plan for affected users.

Multichain co-founder DJ Qian said this morning that he was also in talks with the bridging project’s CEO to resolve the issue