SpiritSwap, a Fantom-based decentralized exchange (DEX), is winding down its operation after Multichain’s (MULTI) hack drained its treasury of all funds, according to an Aug. 9 message on its Telegram channel.
On July 14, the Multichain team closed the cross-chain protocol following their inability to reach CEO Zhaojun and effectively maintain its operation. Before then, the protocol was exploited for $126 million, with most funds stolen from its Fantom Bridge.
SpiritSwap said:
“The unfortunate Multichain hack has left our treasury drained, and without the means to finance essential aspects of our operation – from regular development costs to operational salaries, from monthly costs to marketing.”
The DEX intends to seek a fresh team to assume project control. Failing this transition, the protocol will shutter operation by Sept. 1. This strategic move aims to prevent disruption for users who may withdraw their liquidity from the protocol before the impending shutdown.
SpiritSwap is among the top 10 DeFi protocols on Fantom (FTM). At its Jan. 2022 peak, the total value of assets locked (TVL) on the protocol was more than $340 million. However, it has since dropped to $2.92 million, according to DeFillama data.
