Overview
Multichain is dead. Do not interact with any Multichain contracts or bridged assets.
Multichain (formerly Anyswap) was one of the largest cross-chain bridges in the cryptocurrency ecosystem, facilitating billions in cross-chain transfers across 90+ blockchains at its peak. The protocol used a multi-party computation (MPC) network to manage bridge keys, enabling cross-chain token transfers through a lock-and-mint mechanism.
In July 2023, Multichain collapsed in one of the most devastating incidents in crypto bridge history. Over $130 million was drained from the bridge's contracts in a series of unauthorized transactions. The events unfolded against the backdrop of the CEO Zhaojun's arrest by Chinese authorities months earlier — an arrest that was not publicly disclosed to users or the community. The exact nature of the collapse — whether it was an external exploit, insider theft, or forced access by authorities — remains disputed and unclear.
The collapse devastated multiple blockchain ecosystems that depended on Multichain for bridged asset backing. Fantom was hit particularly hard, as many "stablecoins" and tokens on Fantom were Multichain-bridged assets that lost their backing overnight. The Multichain collapse is estimated to have caused hundreds of millions in secondary damage across affected chains.
Security
Catastrophic Failure
Multichain's security failed completely and irreversibly:
The $130M+ Drain (July 2023): Starting on July 6, 2023, large unauthorized withdrawals began flowing from Multichain's MPC wallets. Over $130 million was drained across multiple chains, including approximately $120 million from Multichain's Fantom bridge. The transactions appeared to originate from compromised MPC key shares.
CEO Arrest: Zhaojun (also known as DJ), Multichain's CEO and the primary controller of the MPC infrastructure, was arrested by Chinese police in May 2023. His arrest was not disclosed to the community for weeks. The centralization of MPC key control in one person's custody created the single point of failure that enabled the collapse.
Operational Silence: For weeks before the drain, Multichain experienced "technical issues" — delayed transactions, stuck bridges, and communication blackouts. These were likely symptoms of the MPC infrastructure losing the CEO's key shares. The team's failure to communicate transparently during this period prevented users from withdrawing funds.
Root Cause: Centralized Key Management
Despite claiming to use multi-party computation (MPC) for decentralized key management, the reality was that Multichain's bridge keys were critically dependent on the CEO's infrastructure and key shares. When the CEO was arrested and lost access to his systems, the MPC network could not function. This revealed that the "decentralized" bridge was, in practice, controlled by a single individual.
No Recovery
Multichain has not recovered. The bridge is non-functional. Drained funds have not been returned. Affected users have no recourse. The project's social media and communication channels are largely abandoned.
Technology
MPC Bridge Design
Multichain used a multi-party computation (MPC) model where bridge keys were split among multiple parties. In theory, MPC provides security through key distribution — no single party can sign transactions alone. In practice, Multichain's MPC was fatally centralized, with the CEO controlling critical infrastructure and key shares.
Lock-and-Mint Mechanism
The bridge operated a standard lock-and-mint model: tokens locked on the source chain, corresponding tokens minted on the destination chain. The minted tokens were only valuable as long as the locked tokens remained safely held — when they were drained, all minted tokens instantly lost their backing.
Router & anyToken System
Multichain's "anyToken" standard created wrapped versions of tokens on destination chains (e.g., anyUSDC on Fantom). These tokens depended entirely on the bridge's reserves. When reserves were drained, anyTokens became worthless, creating cascading losses across DeFi protocols that held them.
Decentralization
Completely Centralized in Practice
Multichain's fatal flaw was extreme centralization disguised as decentralization:
- MPC key centralization: Critical key shares were controlled by the CEO's personal infrastructure.
- No decentralized fallback: When the CEO was arrested, no recovery mechanism existed.
- Opaque corporate structure: The team's structure, key distribution, and operational security were never transparently disclosed.
- Single point of failure: One person's arrest disabled the entire bridge, demonstrating that "MPC" was branding, not reality.
Governance Theater
Any governance mechanisms were irrelevant when the bridge's core security depended on one individual. Decentralization in bridge infrastructure means nothing if the key management is centralized.
Adoption
Dead
Multichain has zero legitimate adoption. The bridge is non-functional. Any remaining contract interactions are likely scam-related. No rational user should interact with Multichain infrastructure.
Historical Peak
At its peak, Multichain was one of the top 3 bridges by TVL, processing billions in monthly cross-chain volume across 90+ chains. This massive adoption made the collapse proportionally more devastating.
Ecosystem Damage
The collapse destroyed value across multiple chains:
- Fantom: Billions in Multichain-bridged assets (USDC, USDT, DAI, wBTC, wETH) lost their backing, crashing Fantom's DeFi TVL by ~60% overnight.
- Other chains: Moonbeam, Boba Network, and other chains with significant Multichain-bridged assets suffered similar collateral damage.
- DeFi protocols: Lending protocols, DEXs, and yield farms holding anyTokens experienced cascading losses.
Tokenomics
MULTI Token (Worthless)
The MULTI token (formerly ANY) has collapsed to near-zero. With no functional protocol, no revenue, and no team, the token retains no value. Any trading is purely speculative on dead infrastructure.
Risk Factors
- PROJECT IS DEAD. Do not interact with any Multichain contracts.
- $130M+ directly drained from bridge wallets in July 2023.
- Hundreds of millions in secondary damage across Fantom and other chains.
- CEO arrested by Chinese authorities; bridge keys effectively lost.
- Fraudulent decentralization claims — MPC was centralized in one person's control.
- No recovery path. Funds are gone. The project is abandoned.
- anyTokens on any chain are worthless. Do not hold or trade Multichain-bridged assets.
- Remaining contracts may be honeypots for scammers exploiting the abandoned infrastructure.
Conclusion
Multichain is the definitive cautionary tale about bridge centralization risk. A bridge that marketed itself as using "decentralized" MPC key management was, in reality, dependent on a single individual whose arrest brought down the entire system and resulted in $130+ million in direct losses plus hundreds of millions in collateral damage.
The 1.2 overall score — the lowest possible for a non-zero rating — reflects a completely dead project that caused catastrophic, irrecoverable losses. Every dimension scores at or near the minimum. Multichain's story contains critical lessons:
- MPC is only as decentralized as its implementation. Marketing "MPC" means nothing if key shares are centralized.
- Bridges with opaque key management are ticking time bombs. Users must demand transparent, verifiable decentralization.
- Ecosystem-level bridge dependency creates systemic risk. Fantom's DeFi collapsed because an entire ecosystem's bridged assets depended on one bridge.
- Communication failures compound technical failures. The weeks of silence before the drain prevented users from protecting themselves.
Do not interact with Multichain. Do not hold anyTokens. The bridge is dead.