cross-chain protocol multichain revealed On 31 May that the team was unable to contact the CEO, Zhaojun, fueled rumors that the protocol’s leaders could be arrested in China over ongoing technical issues.
“The team has made every effort to keep the protocol running, but we are currently unable to contact CEO Zhaojun and obtain the necessary server access for maintenance,” read a Twitter thread. As reported by Cointelegraph, the protocol has been experiencing technical issues over the past week, with transactions slowing down in several cross-chain bridges without a clear explanation.
In the past two days, the Multichain protocol has encountered several problems due to unforeseen circumstances. The team has made every effort to keep the protocol running, but we are currently unable to contact CEO Zhaojun and obtain the necessary server access to…
– Multichain (formerly Anyswap) (@MultichainOrg) May 31, 2023
According to According to rumors circulating on Twitter, the Chinese police arrested the Multichain team and seized $1.5 billion in smart contract funds. Cointelegraph contacted MultiChain but did not receive an immediate response. As of now, the rumors are unconfirmed.
It is rumored that the Multichain team was arrested by the Chinese police for controlling $1.5 billion in contract funds, and some team members transferred 494200 Multi-Tokens from the team’s address to the gate today. Be aware of the risks.$many #multichain pic.twitter.com/KpB9ehl5ls
— 0xfleet (@0xfleet) May 24, 2023
Based on MultiChain’s tweet, some protocols were affected by issues on the Router5 node, which supports cross-chain connections. Without authorization to contact the CEO and resolve the issue, the team blocked services for more than 10 chains, including Cakechain, Public Mint, Dynochain, Redlight Chain, Dexit, Unity, HPB, Onus, Omaxe, Findora, and Planck. suspended.
“In order to protect the interests of our users, we have made the decision to suspend affiliate cross-chain service for the affected chains on the user interface,” said the protocol’s team.
On Twitter, members of the crypto community pointed out that Multichain’s inability to access the servers and resolve the issue shows that the protocol is a “backward step” from decentralization.
I don’t understand how this kind of problem happens in such big profile projects. I mean really a man, so everything is ruined. It seems to be a step backward in terms of organizational structure, not a step forward in decentralization.
— Wonderwilds (@JerbzWee) May 31, 2023
In response to ongoing issues with no clear explanation, Binance suspended deposits for 10 bridged tokens on the BNB Smart Chain, Phantom, Ethereum, and Avalanche blockchain networks on May 25. The unexplained downtime cost the Phantom Foundation ₹449,740 multi ($2.4 million). Liquidity on the decentralized exchange SushiSwap. Blockchain analytics firm LookOnChain reported $3 million in multiple outflows related to smart money accounts last week.
The Magazine: ZK Rollups are the ‘end game’ for blockchain scaling, Polygon Miden founder
Stay connected with us on social media platforms for instant updates, Click here to join us Facebook