Multichain User Deposits $1 Million into Binance Using Bridge
Cyvers.ai, a blockchain security firm, has revealed how a crypto user utilized Multichain’s bridge to deposit $1 million into Binance. This user demonstrated a high level of familiarity with the inner workings of Multichain’s protocol.
The process involved sending approximately 1.2 million Fantom (FTM) tokens from Binance to their crypto wallet. They then exchanged 500,000 FTM for 28.4 Wrapped Bitcoin (wBTC) and used the Multichain bridge to transfer it to Ethereum. Finally, they sent the wBTC, which was worth $1 million, to Binance.
Exploiting Price Differences on Fantom Blockchain
This million-dollar transaction was part of an arbitrage strategy aimed at capitalizing on price differences between assets on the Fantom blockchain and other networks. The user took advantage of the significantly lower price of wBTC on Fantom compared to other markets, allowing them to obtain a favorable exchange rate with FTM on SpookySwap, a decentralized exchange on Fantom.
Multichain Bridge and Recent Transactions
To complete the transaction, the user utilized the Multichain bridge to transfer funds from Fantom to Ethereum before sending them to Binance. The Multichain bridge had been closed for 117 days but briefly opened for approximately two hours in the last 24 hours to process transactions from the Fantom blockchain.
Unlikely Involvement of Ex-CEO of Multichain
It is highly unlikely that the ex-CEO of Multichain, who had his servers shut down and was detained by Chinese law enforcement, was responsible for this $1 million transaction. The Multichain team has stated that the ex-CEO controlled the project’s servers and private keys, which were seized by the authorities.
Furthermore, it is improbable that the ex-CEO’s sister, who was arrested while attempting to recover locked funds, was involved in this transaction. The Fantom Foundation has reportedly hired lawyers in China to help recover customer assets following the ex-CEO’s detention.
Hot Take: A Skillful Exploitation of Multichain’s Bridge
The use of Multichain’s bridge to deposit $1 million into Binance demonstrates a high level of skill and knowledge on the part of the user. By taking advantage of arbitrage opportunities and utilizing the favorable exchange rate on SpookySwap, they were able to maximize their gains. However, the involvement of the ex-CEO of Multichain in this transaction is highly unlikely. This incident highlights both the potential for profit in crypto trading and the importance of security measures in protecting user funds.
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