Multichain Team Has Lost Sight Of Their CEO, Have Halted Service For Affected Chains

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Multichain, the cross-chain protocol, revealed on 31st May that the team had been incapable of locating their CEO, Zhaojun, which fueled further rumors about the leadership of the protocol being arrested in China.

A Twitter thread stated that the team had done everything that they could have done to maintain the smooth running of the protocol, but they were still unable to contact CEO Zhaojun, and obtain the server access that was necessary for maintenance. As reported by Cointelegraph, the protocol has already gone through major technical problems over the last week, with the transactions being delayed across multiple cross-chain bridges without offering any clear explanation. 

Multichain CEO Could Be Arrested In China

According to rumors that have been making the rounds of Twitter, the Chinese police arrested the team of Multichain and also confiscated around $1.5 billion in smart contract funds. Based on the tweet, some of the protocols were affected by problems on the Router5 node, which supports the very connection between the chains.

Having been incapable of contacting the CEO and lacking the hierarchical permission to address this issue, the team had further suspended services for close to 10 chains, which included Public Mint, Kekchain, Redlight Chain, DynoChain, Dexit, HPB, Ekta, Onus, Findora, Omax, and Planq. 

On Twitter, members of several crypto communities pointed out that the inability of Multichain to access this server and solve the problem showed the protocol was taking quite a backward step from decentralization. Due to the issues, Binance suspended the deposits for 10 bridged tokens on the BNB Smart Chain, Ethereum, Fantom, and Avalanche Blockchain networks on 25th May. The unexplained downtime also led the Fantom Foundation to remove 449,740 MULTI from liquidity on SushiSwap.