Cross-chain protocol Multichain halts operations

The team of the cross-chain protocol Multichain announced that it is ceasing operations due to “a lack of alternative information and operating resources.”

The developers confirmed that, since May 21, 2023, CEO Zhao Jun has not been in touch after his detention by Chinese police.

According to the team, it contacted the head of Multichain’s family and learned that all his computers, phones and hardware wallets were confiscated by law enforcement.

“Since the project’s inception, all operating funds and investments have been under Zhao Jun’s control. This also means that all assets of the team and access to servers are under his and the police’s control,” the developers said.

The protocol’s problems emerged in late May — users began reporting transactions stuck in the network due to an error during the network update. On June 4, the developers, with help from Zhao Jun’s family, gained access to his home computer to fix the technical issues.

According to the report, on July 7 Multichain users’ assets were transferred to unknown addresses. On July 9 Zhao Jun’s sister sent the remaining client funds to a router pool and notified the team of actions to preserve the assets. After that, the police detained her as well.

“The Multichain team does not have access to the domain account to redirect or disable the external interface. … Due to the lack of alternative information sources and appropriate operating resources, the group is forced to cease operations. If there are any further notices and developments, the team will inform the community accordingly,” said project representatives.

Earlier, Circle and Tether froze $65 million worth of assets withdrawn from Multichain.