Multichain Shuts Down as CEO Detained: Alleged $220 Million Fund Movement by CEO’s Sister

Multichain, a leading cross-chain router protocol, has recently hit rock bottom, following a series of unfortunate events. The organization, which is most known for facilitating and deploying blockchain applications with speed, has shut down, after the arrest of its CEO.

After months of speculation, the team at Multichain has taken to Twitter to reveal that its CEO, Zhaojun, is still under custody. In a lengthy tweet, the organization detailed its plans for the long term, while sharing details on the current state of things.

The CEO of Multichain was taken away by Chinese police officials from his home, on the 21st of May, and has been out of contact with the Multichain team, the team wrote.

“The team contacted the MPC node operators and learned that their operational access keys to MPC node servers had been revoked. Furthermore, these MPC node servers, like all other ordinary servers, were actually running under Zhaojun’s personal cloud server account. No member of the team has access to Zhaojun’s personal cloud server account, so nobody can log on to these MPC servers.” The tweet read.

1. On May 21, 2023, Multichain CEO Zhaojun was taken away by the Chinese police from his home and has been out of contact with the global Multichain team ever since. The team contacted the MPC node operators and learned that their operational access keys to MPC node servers had…

— Multichain (Previously Anyswap) (@MultichainOrg) July 14, 2023

After gaining access to the CEO’s family, it was later discovered that all of Zhaojun’s properties were confiscated by the authorities. Additionally, all funds and investments from the firm, including the team’s funds, are still under Zhaojun’s possession.

In a bid to cooperate with legal authorities, the team has agreed to refrain from disclosing unauthorized information about the ongoing case to the general public.

After successfully logging into the cloud server platform with the help of Zhaojun’s family, for a brief period, the team shifted its focus on operating the platform as designed.

Chinese Police officials take Zhaojun’s sister into Custody

Although the police are yet to disclose the full details of the arrest, the team was assured that Zhaojun’s release will commence soon.

Early this month, user assets locked on the MOC address were also transferred to an unknown wallet. It was later discovered that Zhaojun’s sister was behind the operation.

As the team further disclosed ;

“On July 9, Zhaojun’s sister transferred the remaining user assets in the router pool and subsequently notified the team and several project parties of this asset preservation action. The funds were transferred to EOA addresses controlled by Zhaojun’s sister. 0x1eed63efba5f81d95bfe37d82c8e736b974f477b

0x6b6314f4f07c974600d872182dcde092c480e57b”

Zhaojun’s sister has also reportedly been taken into custody and is still not in contact with the team at Multichain. Conclusively, the team is choosing to halt all ongoing operations on the network, as it awaits more solid information from alternative, credible sources.

At present, the Multichain team claims to have no access to domain accounts, which could help to bring down the official website. The team is currently requesting that community members amplify their complaints and reach out to GoDaddy, a leading domain registrar, to help bring down the website.