Multichain continues to be the topic of debate as suspicious activity attracts the crypto community's attention.
In an intriguing twist to Multichain's massive exploit, blockchain security firm Chainalysis has suggested that the colossal outflows could be the result of an internal rug pull.
On July 10th, Chainalysis wrote a dedicated blog post discussing what possibly happened on July 6th, when Multichain experienced "unusually large, unauthorized withdrawals."
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According to Chainalysis, this could be an orchestrated "hack" or an inside operation, colloquially termed a "rug pull." The fallout from the exploit amounts to a staggering loss of more than $125 million, which Chainalysis coined "one of the biggest crypto hacks on record."
Adding a dash of suspense to the incident, Chainalysis has brought up the possibility that compromised administrative keys could have paved the way for the exploit. This has ignited the theory of an "inside job."
While it’s possible those keys were taken by an external hacker, many security experts and other analysts think this exploit could be an inside job or rug pull, due in part to recent issues suffered by Multichain.
Digging into the technical details, Chainalysis noted that Multichain employs a multiparty computation (MPC) system in its smart contracts, similar to a multisignature wallet.
Confirming this approach, a Chainalysis representative confirmed that the event could indeed be considered as a "possible rug pull."
Further strengthening the suspicion of an internal maneuver, Chainalysis pointed to the recent problems faced by Multichain, including the puzzling disappearance of its CEO, known as "Zhaojun," in late May.
Additionally, Multichain had also been grappling with technical glitches, including transaction delays, leading Binance to withdraw support for several of its bridged tokens on July 7th.
While these incidents often serve as a reality check for the industry, they also underline the importance of robust security mechanisms and transparent operations.
