However, Unbanked also let on that their closure was more related to an investment falling through than to any regulatory issues. The company wrote that a $5 million investment was never delivered, and that the company had "exhausted all options" funding-wise.
- "Unbanked will be winding down", Unbanked
The decision comes amidst broader troubles for DCG, which is embroiled in the bankruptcy proceedings of its Genesis subsidiary. Earlier in May, DCG missed a $630 million payment to Genesis.
The scam was helped along by ben.eth, a Twitter personality who retweeted one of the tweets by the compromised account in which Aoki appeared to endorse a token created by ben.eth. According to crypto sleuth zachxbt, multiple followers of ben.eth were impacted by his retweet, which zachxbt characterized as "quote tweet[ing] a phishing scam posted by the compromised @steveaoki account for clout". Ben.eth ultimately promised to reimburse his fans who lost money thanks to his tweets.
Meanwhile, rumors swirled that the Multichain team had been arrested by Chinese police, though there doesn't seem to be much corroborating evidence of this.
The issues and the rumors sparked a drop in token price of around 30%. Several large parties also appeared to distance themselves from the project and its token, including the Fantom Foundation, which withdrew 449,740 MULTI (~$2.4 million) in liquidity on SushiSwap.
On May 31, Multichain issued a statement that "we are currently unable to contact CEO Zhaojun and obtain the necessary server access for maintenance", and wrote that even more bridges were being impacted by the same issues as in the previous week.
On May 23, crypto sleuth zachxbt tweeted that the project appeared to have executed their exit scam, bridging around 31.6 million Tether to various addresses. Platform users began to report that they could not withdraw funds.
The attacker has already drained locked votes and sold some of the $TORN tokens, which are governance tokens that both entitle the holder to a vote but also were being traded for $5–$7 around the time of the attack. The attacker has since tumbled 360 ETH (~$655,300) through Tornado Cash to obscure its final destination. Meanwhile, $TORN plummeted in value more than 30% as the attacker dumped the tokens.
The attacker now has full control over the DAO, which according to crypto security researcher Sam Sun grants them the ability to withdraw all of the locked votes (as they did), drain all of the tokens in the governance contract, and "brick" (make permanently non-functional) the router.
Croatian cryptocurrency investment company BitLucky reportedly collapses; more than $75 million allegedly missing
Some have expressed the opinion that BitLucky was a Ponzi scheme all along, given the unreasonable promises of 5–25% monthly returns. The editor of a crypto news outlet also expressed that "there was a 'line of [red] flags'", including that Burazer never wanted to appear in the media or have his picture shown online.
- "Najveća domaća kripto prevara? Riječanin klijentima uzeo 70 milijuna €. Upravo je u bijegu", Jutarnji list (in Croatian)
- "DeFi protocol WDZD Swap exploited for $1.1M: CertiK", CoinTelegraph
The funds are not at risk, but it will take at least a week before the funds are unstuck because any code change requires a DAO vote. "Considering governance times, if approved, the fix will be applied in approximately 7 days from now: 1 day of delay to start voting, 3 days of voting, 1 day of timelock on Ethereum, and 2 extra days of timelock on Polygon," explained a post by Bored Ghost Developing, a contributor to Aave.