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Geist Finance Shut Down: Lessons Learned from Multichain Exploit

Geist Finance Shuts Down Due to Multichain Exploit

Key Points:

– Lending protocol Geist Finance is permanently shutting down after suffering losses from the Multichain exploit.
– Geist contracts were paused on July 6 and resumed in “withdraw and repay only” mode on July 9.
– The team confirmed that they do not plan to reopen lending and borrowing on Geist.
– Chainlink oracles used by Geist to track the value of assets are misreporting the values of Multichain tokens.
– Geist had over $29 million worth of crypto assets locked in its contracts before the hack.
– Multichain hackers withdrew over $100 million from various bridges, including those for Dogechain, Fantom, and Moonriver.
– The Multichain team confirmed the hack on July 14 and mentioned that the CEO’s sister attempted a counter-exploit to recover funds but was arrested.

Hot Take:

Geist Finance’s decision to shut down permanently following the Multichain exploit highlights the risks and vulnerabilities faced by lending platforms in the crypto industry. The misreporting of Multichain token values by Chainlink oracles has made it impossible for Geist to reopen lending, thus resulting in its closure. This incident serves as a reminder for users and developers to prioritize security measures and conduct thorough audits to mitigate potential risks. Stay vigilant, crypto enthusiasts!

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