Multichain Hack Is a Possible "Rug Pull," A Further $103M Drained

Multichain, a cross-chain bridge protocol, saw another $103 million transferred to different blockchain addresses, according to security firm Beosin.

Last week, the bridge protocol formerly known as Anyswap was drained of $125 million in one of the biggest crypto hacks in history.

Blockchain data firm Chainalysis has suggested that the exploit was a “hack or rug pull by insiders,” with many ecosystem participants perplexed. Multichain has been locked since May due to technical issues, with users unable to make transactions.

The exploit was due to the project administrator’s keys being compromised, or used by the administrator directly, which led many security experts and analysts to believe it could be a rug pull, according to Chainalysis. Multichain’s CEO, alias Zhaojun, also went missing, adding to the evidence. In crypto, a rug pull is when developers raise funds to deliver a project but then abandon it and fraudulently keep investor funds.