Geist Finance, a crypto lending platform operating as a $29 million credit protocol, has unexpectedly announced its permanent closure. Geist Finance's decision to shut down is related to the platform's encounter with the Multichain crisis and its struggles to cope with the adverse effects. Multichain recently suffered an attack that resulted in losses of over $100 million, and Geist Finance was also affected, leading to its inability to continue operations. #GeistFinance

Multichain Issues and Closure Decision:

The reasons behind Geist Finance's platform closure are related to the issues within Multichain and their impact on the platform. Geist Finance decided to shut down due to the incorrect reporting of token values by the oracles within Multichain. The misinformation generated by the oracles weakened the platform's ability to calculate accurate values, resulting in significant losses. As a result, Geist Finance's application development team announced the permanent closure of the platform through their social media accounts, stating, "Geist Finance is permanently shutting down due to losses incurred from the Multichain exploit."

Geist Finance's Operations and Affected Assets:

Geist Finance was operating on the Fantom network before its closure, providing users with the ability to borrow bridged tokens such as USD Coin, Tether, Bitcoin, and Ethereum or use them as collateral. However, the Multichain crisis negatively affected the value of the platform's locked assets. It has been stated that Geist Finance had over $29 million worth of locked assets prior to its closure.

Fund Outflows from Multichain and CEO's Arrest:

The fund outflows through Multichain bridges further complicated the closure process of Geist Finance. It was confirmed that these fund outflows occurred due to a hacking attack, and the Multichain team provided information on the matter. Additionally, the CEO of the Multichain project and the CEO's sister were arrested in China. These developments added further uncertainty and complexity to Geist Finance's operations and closure process.

In Summary:

Geist Finance's permanent closure due to the Multichain crisis and oracle issues has had a negative impact on its users and locked assets. This incident once again highlights the importance of security and risk management in the crypto sector. In the future, it is expected that similar platforms will enhance their security measures and take steps to better protect their users. This event also underscores the necessity for increased attention and regulations to address issues in the crypto ecosystem. #MultiChain