Inside Job or Savvy Strategy? The $1 Million Multichain Transfer to Binance Unveiled
In the ever-evolving world of cryptocurrencies, a recent $1 million transfer involving Multichain and Binance has raised eyebrows and curiosity among the crypto community. Was this a well-executed inside job or merely a strategic move by a savvy user taking advantage of arbitrage opportunities?
The Art of Multichain Bridge
Cyvers.ai, a blockchain security firm, uncovered the details of this intriguing transaction that saw a user deftly navigate Multichain’s new bridge to deposit $1 million into Binance. The user’s expertise in using Multichain’s bridge hints at a deep understanding of the protocol’s inner workings.
The transaction began with the transfer of approximately 1.2 million Fantom (FTM) tokens from Binance to the user’s crypto wallet. Subsequently, the user executed a swap, converting 500,000 FTM into 28.4 Wrapped Bitcoin (wBTC), which they then moved to Ethereum through the Multichain bridge. The final leg of this journey involved sending the wBTC, valued at $1 million, to Binance.
Unlocking Arbitrage Opportunities
The million-dollar swaps were part of a broader strategy to capitalize on arbitrage opportunities by exploiting price variations between assets on the Fantom blockchain and other networks. Notably, the price of wBTC on Fantom was around $7,000, approximately 80% lower than the rates on other markets. This provided the user with an advantageous exchange rate when converting FTM on SpookySwap, a decentralized exchange on the Fantom blockchain.
The transactions involving the Multichain bridge were particularly notable because it had been closed for 117 days but briefly opened for about two hours within the last 24 hours to process transactions from the Fantom blockchain.
Was It an Inside Job?
The skillful execution of this bridge transaction has led to speculation about whether the user had insider knowledge about the bridge’s operations. The CEO of Cyvers.ai shared insights, stating, “It feels like it was someone who had some preliminary information. As he miraculously knew that the bridge would function.”
However, it is highly unlikely that the transaction was carried out by Multichain’s ex-CEO, known as “Zhaojun He.” Multichain suspended its bridge operations in July after unauthorized transactions worth $130 million, and Zhaojun He’s detention by Chinese law enforcement. The Chinese police reportedly seized the project’s servers and private keys, making it improbable for Zhaojun to execute the transaction. His sister’s arrest, while trying to “recover” locked funds, further supports this notion.
This $1 million transaction is part of a series of withdrawals to private wallets following the events of July. The Fantom Foundation has taken steps to recover customer assets in China, highlighting the complex aftermath of the Multichain incident.
In the ever-shifting landscape of cryptocurrency, the $1 million Multichain transfer remains a captivating enigma, raising questions about the depths of crypto knowledge and the fine line between opportunity and misconduct.
