Multichain hacked case - implication for crypto rugpull

Crypto Security/Hack Alert
1

According to a report on July 11th, Chainalysis suspects that the recent large-scale outflow of funds (~USD 125M) from Multichain may be the result of a “rug pull” fraud within the project.

Screenshot 2023-07-18 at 10.26.02
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  • The attacker chose to keep USDC and USDT tokens, but Circle and Tether successfully blocked the funds from leaving, preventing losses of 65 million USDC and 2.5 million USDT.

  • The incident was attributed to the MPC system, a multi-signature wallet that requires multiple confirmations.

  • Chainalysis has ruled out a codebase flaw and suggests the attacker leaked MPC keys.

Before the hack, Multichain CEO Zhaojun Taken Into Custody by Chinese Police on May 21, 2023.

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2

The motivation of the crossbrigde hacking is quite clear- withdraw money ASAP when having trouble with government.

Ironically, the price of $FTM and their ecosystem tokens are recovered strong in the mid July 2023. :thinking:

3

Dead Cat Bounce abnormal in the market, I guess.

4

So after a week, market would go down as the result of the attack.