After a month-long troubles, Multichain has decided to cease all operations.
Multichain, a renowned cross-chain protocol, has proclaimed its cessation of services due to dwindling operational funds.
This abrupt halt follows an assessment from blockchain analytics firm, Chainalysis that insinuates the possibility of an insider "rug pull."
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On July 14th, Multichain took to Twitter to announce the decision to discontinue its operations. The company claimed that a “lack of alternative sources of information and corresponding operational funds” was the driving force for the decision.
Further complicating matters, the Multichain team has lost all contact with their CEO, Zhaojun, after his alleged arrest in China.
The Multichain team reportedly reached out to Zhaojun's family, only to discover that his electronic devices, wallets, and mnemonic phrases had been seized by law enforcement. The team expressed their concern as follows:
Since the inception of the project, all operational funds and investments from investors have been under Zhaojun’s control. This also means that all the team’s funds and access to the servers are with Zhaojun and the police.
Adding to this predicament, the team was informed by Zhaojun's sister about an asset preservation act, which transferred some funds to her addresses. However, in a shocking twist, Zhaojun's sister was also detained by the authorities and is currently unreachable.
Multichain experienced its first troubles in May, when the firm's routes were suspended for an upgrade, causing fund transfers to be unexpectedly delayed.
In the wake of this move, Binance, a major cryptocurrency exchange, suspended deposit and withdrawal support for some Multichain bridged tokens, citing uncertainty surrounding the protocol.
Unfortunately, the situation worsened for Multichain when substantial outflows from the Multichain MPC bridge platform ignited concerns of a potential exploit.
