Geist Finance Shuts Down Following Multichain Exploit

Geist Finance Closure

Geist Finance, a lending protocol operating on the Fantom network, has announced its permanent shutdown. This decision follows substantial losses resulting from the Multichain exploit. The development team confirmed the closure in a social media post dated July 14, emphasizing their intent not to resume lending or borrowing activities.

Impact of the Multichain Exploit

Prior to the exploit, Geist Finance handled over $29 million in crypto assets. The platform allowed users to lend, borrow, or use bridged tokens as collateral. This included prominent cryptocurrencies such as USD Coin (USDC), Tether (USDT), Bitcoin (BTC), and Ether (ETH). The protocol relied on Chainlink oracles to accurately track asset prices, ensuring proper collateral and loan value assessments.

Transition to Withdrawal Mode

On July 6, Geist contracts were paused to prevent further losses. By July 9, the platform shifted to a "withdraw and repay only" mode, allowing users to retrieve their funds and settle existing loans. This transition marks the end of Geist's operations, as the team has no plans to restore full functionality.

The Future of Crypto Lending Protocols

The closure of Geist Finance underscores the challenges faced by crypto lending platforms, particularly in security and risk management. As the industry evolves, protocols must prioritize robust security measures to protect assets and maintain user trust. The Geist Finance shutdown serves as a cautionary tale for other platforms striving to balance innovation with security.