On November 1, a wallet address managed to turn around $280,000 worth of Fantom (FTM) tokens into $1.9 million by exploiting the momentary opening of the long-frozen Multichain Bridge. This exploit has led to speculation within the crypto community, with some suspecting an insider job.
The Multichain Bridge had been frozen since an exploit in July 2023. During this short opening, the wallet address seized the opportunity to make substantial profits.
The wallet’s strategy involved withdrawing 1.9 million FTM tokens from Binance, swapping them for Bitcoin on the Fantom Network, and then using the Bitcoin for a cross-chain transfer through the Multichain Bridge to Ethereum. This resulted in the acquisition of 28.4 Wrapped Bitcoin (wBTC) worth $977,000, 357 Ether (ETH) worth $642,000, and 298,000 Tether (USDT).
While the wallet’s actions are noteworthy, the crypto community has been more focused on the “Multichain executor.” Many have raised suspicions about the timing of the trade and questioned whether it might be an insider job, as the wallet appeared to be the sole beneficiary of the bridge opening.
The Multichain Bridge had been exploited for over $126 million in July 2023, during which significant amounts of various assets were drained. However, there is no concrete evidence to suggest an inside job by the trader at this time. Some suggest that the Multichain team may be attempting to restart their operations.
As of now, there has been no official statement from Fantom Network or Multichain regarding this incident.