Multichain, a cross-chain protocol, has announced its decision to cease operations due to a lack of operating funds. The announcement came on July 14, following a report by blockchain analytics firm Chainalysis, which suggested that insider actions were responsive le for significant withdrawals from the platform.
The official Twitter account of Multichain stated that the team had no alternative sources of information or operating funds, leading to the decision to shut down operations. They also highlighted that the Global Multichain team had lost contact with CEO Zhao Jun since his detention by Chine se authorities . The team learned that Zhao Jun's personal belongings, including his computer, mobile phone, wallet, and seed words, were seized by the authorities. As Zhao Jun had control over operating funds and investor investments, all team funds and server access we re in his possession, along with the police.
Furthermore, the team mentioned that Zhao Jun's sister had attempted to preserve some of the assets by transferring them to an address she controlled. However, the team later discovered that Zhao Jun's sister had also been detained by the police, resulting in a loss of contact . With these circumstances, the team made the decision to cease operations.
The troubles for Multichain began in May when the platform's operations were suspended for an upgrade, causing delays in funds transfers. As a result, cryptocurrency exchange Binance discontinued deposit and withdrawal support for certain multi-chain bridge tokens, citing un certainties surrounding the protocol. additionally , concerns have arisen regarding large outflows from multi-chain MPC bridging platforms, leading to fears of exploitation. Notably, assets worth over $100 million were withdrawn from the Fantom bridge on the Ethereum side, prompting speculation of a hack.
