Multichain Opening: 280K Dollars Investment Soars to 1.9M Dollars, Raising Insider Trading Concerns

Crypto News- In an astonishing turn of events, a wallet address managed to turn a modest $280,000 investment into a remarkable $1.9 million windfall during a brief reopening of the Multichain Bridge on November 1. This event, which took place after the bridge had remained inactive since an earlier exploit in July 2023, immediately raised suspicions of insider trading within the cryptocurrency community.

Multichain Opening: 280K Dollars Investment Soars to 1.9M Dollars, Raising Insider Trading Concerns

The wallet address, identified as 0x4372, executed this lucrative maneuver by first withdrawing 1.9 million Fantom (FTM) tokens from Binance. These FTM tokens were then exchanged for Bitcoin (BTC) on the Fantom Network, where the value of BTC was $34,811. The wallet address subsequently used this BTC to perform a cross-chain transfer via the Multichain Bridge to the Ethereum network, resulting in the acquisition of 28.4 Wrapped Bitcoin (wBTC), valued at $977,000, 357 Ether (ETH) tokens, each worth $1,810 ($642,000), and 298,000 Tether (USDT) tokens, each valued at $1.00. Following this, the wallet address proceeded to bridge these assets back to Binance.

However, the crypto community’s focus quickly shifted from the wallet address to the “Multichain executor.” Earlier in the year, the Multichain Fantom bridge had been exploited for over $126 million, leading to the depletion of several ERC-20 assets, including 7,214 Wrapped Ether (wETH) tokens, worth $13.6 million, 1,024 wBTC, valued at $31 million, and $58 million worth of USD Coin (USDC).

Questions began to surface regarding the timing of this specific trade, with many members of the crypto community speculating that it might be an inside job, given that the wallet was the sole beneficiary of the bridge’s reopening. Some even suspected that Multichain, which had been inactive for over 120 days, had briefly reopened exclusively for these specific transactions that favored the wallet owner.

Despite these suspicions, 0xScope, a data analytics firm within the Web3 space, maintained that there was no conclusive evidence to support the theory of insider trading by the trader. According to 0xScope, their examination of Multichain revealed that certain chains, including KCC, Moonriver, and Moonbeam, remained operational, suggesting that the Multichain team may be working on restarting their operations.