In a recent incident, a suspicious Ethereum wallet exploited a vulnerability in the Multichain system, enabling it to receive funds from the Multichain team, even though the team claims no knowledge of the wallet.
Subsequently, the wallet sold a substantial amount of tokens on Uniswap, a decentralized exchange. The tokens sold included $2.4 million worth of Chainlink’s token (LINK), $1.8 million worth of WOO Network (WOO) tokens, $800,000 worth of CRV tokens, and $870,000 worth of YFI tokens.
As a result of the extensive selling activity, the price of WOO Network tokens experienced a sharp 8% drop. The connection between the wallet and funds from the Multichain team’s address has raised suspicions, despite the team’s denial of any knowledge about the wallet.
This incident has raised concerns about the security of the Multichain system and highlighted the potential impact of suspicious wallets on token prices within the decentralized finance ecosystem. Authorities are currently conducting further investigations into the exploit and the wallet’s activities.