• Multichain, a cross-chain router protocol, announced it is shutting down its operations due to a lack of operational funds and the detention of its CEO by Chinese police.
• The team confirmed the rumors about the exec’s arrest and revealed that Zhaojun has been out of contact with the team since being apprehended by the Chinese police from his home.
• All of Zhaojun’s computers, phones, hardware wallets, and mnemonic phrases were confiscated by the authorities.
Multichain Confirms CEO’s Arrest
Multichain’s CEO and his sister have reportedly been detained by Chinese police. The recently hacked cross-chain router protocol Multichain announced it is shutting down its operations due to a lack of operational funds and information about its CEO Zhaojun who is in the custody of Chinese police.
Police Confiscate Property
Upon contacting MPC node operators, Multichain was made aware that their operational access keys to MPC node servers had been revoked as they were running under Zhaojun’s personal cloud server account and he had sole access to it. Furthermore, all of Zhaojun’s computers, phones, hardware wallets, and mnemonic phrases were confiscated by authorities.
No Access To Funds
Since inception of project, all operational funds and investments from investors have been under Zhaojun’s control. This also means that all the team’s funds and access to servers are with him and police. In order to protect investors‘ interests as well as avoid further losses for investors’ assets; Multichain decided not to reveal unauthorized information about case publicly.
Lack Of Operational Funds
Due to lack of operational funds without control over any asset or server access; Multichain has determined that there are no other options than winding down operations immediately until further notice. They thanked their supporters for understanding this difficult decision taken in light of current circumstances beyond their control.
Final Statement From Team
The team reassured stakeholders that they will continue doing everything possible within legal boundaries to ensure security for user assets as well as help victims get compensation through relevant channels once they receive more updates on situation at hand