September 25, 2023

Fantom’s DEX, SpiritSwap, folding after Multichain hack

SpiritSwap, a decentralized exchange (DEX) on Fantom, will cease operations from Sep.1, roughly 828 days after launching.

The announcement follows the Multichain hack which depleted SpiritSwap’s treasury, making it impossible for the DEX to fund essential operations like costs, salaries, and marketing.

The SpiritSwap team intends to find a successor by Sep. 1. If a transfer of ownership doesn’t happen, the DEX will potentially close.

SpiritSwap says it will assist the successor during the transition period.

At peaks, SpiritSwap had a total value locked (TVL) of $374 million but currently rests at $2.87 million, a decline made worse by the Multichain incident.

Consequently, SPIRIT, the DEX’s native token, is down 42% in the last 24 hours, changing hands at $0.000725 when writing.

Fantom's DEX, SpiritSwap, folding after Multichain hack - 1
SpiritSwap to USD | Source: CoinMarketCap

On July 7, Multichain developers disclosed an irregular transfer that redirected assets from MPC addresses to unfamiliar destinations.

Subsequently, on July 9, Zhaojun’s sister executed a transfer of the remaining user assets within the router pool.

Due to the fallout of the hack, Multichain closed down, and more projects within the Fantom ecosystem are gradually ceasing operations.

Geist Finance, Fantom’s lending protocol, recently announced its closure because of its connection to Multichain.

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