{"id":86576,"date":"2023-11-03T16:09:18","date_gmt":"2023-11-03T14:09:18","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=86576"},"modified":"2025-09-13T06:27:11","modified_gmt":"2025-09-13T03:27:11","slug":"unknown-trader-nets-1m-in-arbitrage-after-multichain-restart","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/unknown-trader-nets-1m-in-arbitrage-after-multichain-restart\/","title":{"rendered":"Unknown trader nets $1m in arbitrage after Multichain restart"},"content":{"rendered":"

The cross-chain protocol<\/a> Multichain, which halted operations in July, restarted in early November, allowing one of its users to profit from arbitrage of $1 million. DL News reports.<\/p>\n

The July shutdown<\/a>, the team explained, was due to the arrest by Chinese authorities of CEO Zhao Jun, which led to a loss of access to the wallet. The project’s problems began as early as May<\/a>, and user funds were subsequently began to be transferred<\/a> to unknown addresses.<\/p>\n

On 1 November the protocol briefly resumed processing transactions on the Fantom<\/a> blockchain. At around 9:40 UTC<\/span> an unknown individual successfully withdrew WBTC worth about $1 million to the Ethereum network. It was the first operation through Multichain in 117 days.<\/p>\n

Subsequently the user made transfers in WETH and USDT. Finding that the bridge was functioning, dozens of other traders began using it with small amounts.<\/p>\n

After about two hours of activity, Multichain stopped again.<\/p>\n

Experts say the timing of the unknown’s operations raises questions about his actions in concert with those who restarted the protocol.<\/p>\n

At 9:23 UTC, this user received 1.2 million Fantom (FTM) tokens from Binance worth about $280,000. <\/p>\n

Then he swapped 500,000 FTM for \u201cwrapped\u201d<\/a> Bitcoin via the DEX Spookyswap on the Fantom blockchain. After the restart, the assets were immediately transferred to Ethereum.<\/p>\n

The same method was used by the unknown actor for swaps of FTM to WETH and USDT, but with withdrawals to the BNB Chain.<\/p>\n

About ten minutes after his last transaction, the bridge stopped working again.<\/p>\n

Experts note that the user effectively capitalised on price discrepancies. For example, WETH before Multichain’s restart traded on Fantom at around $7,000 \u2014 about 80% below current spot quotes. WETH and USDT were in similar positions. Starting with $280,000, he finished with assets worth over $1 million, which he sent back to Binance.<\/p>\n

Cyvers Alerts specialists noted that after the protocol suspended operations a queue of pending transactions remained. It is presumed the arbitrager’s transactions were given priority because the earlier ones stayed in the queue.<\/p>\n

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Just to clarify, we didn’t claim that the stuck transactions have been processed, but rather we were referring to transactions from the last day!<\/p>\n

\u2014 ? Cyvers Alerts ? (@CyversAlerts) November 2, 2023<\/a><\/p><\/blockquote>\n