The cross-chain bridge platform, Multichain, experienced a security breach that led to the unauthorized transfer of over $120 million in digital assets. In response to the incident, Circle, the issuer of USD Coin (USDC), has frozen $63 million across three wallet addresses linked to the hack.

The security firm PeckShield disclosed in a tweet that Circle had frozen $27.65 million, $30.1 million, and $5.5 million in three separate wallet addresses. These wallets had received a significant influx of funds from Multichain following the security breach.

The security breach led to the transfer of $126 million worth of digital assets from Multichain’s bridge deployments on various blockchains like Fantom, Moonriver, and Dogechain to several third-party wallets.

Multichain confirmed the security incident and revealed that they are currently investigating the cause. They have advised all users to cease using Multichain services and revoke any contract approvals related to the platform.

The team also announced that all bridge transactions will remain suspended on their respective chains until further notice. Multichain, formerly known as Anyswap, allows users to transfer their cryptocurrency assets across different blockchain networks.

This incident follows rumors from May that the Multichain team had been arrested by Chinese police and that Chinese authorities may have gained control over the network’s hardware and cold wallet. In the wake of these controversies, Binance announced that it would stop supporting deposits and withdrawals of several cross-chain bridge tokens associated with the Multichain project.