Plain English
Multichain (formerly AnySwap) was one of the largest cross-chain bridges by volume, founded in 2020. Collapsed in July 2023 when CEO Zhaojun was arrested in China and team members lost access to the multi-sig keys controlling user funds. Hundreds of millions in user assets were locked or stolen.
How it actually works
Used a multi-sig validator set controlled by anonymous teams in China. When the team’s legal/operational structure broke down, the bridge could not maintain its custody operations. Funds were drained or stuck. Some chains have since recovered partial assets through community efforts.
What it means for you
Multichain is the canonical case study in bridge counterparty risk. The lesson for HNW users: bridges are not just smart-contract risk — they’re operational and custody risk on every chain they support. Prefer bridges with on-chain verifiable architectures (Across, Stargate) over those depending on anonymous teams. Don’t leave large balances in wrapped representations of any cross-chain bridge.
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Educational content only. Not investment, tax, or legal advice.