The cryptosphere risks experiencing a new cataclysm if the observers’ assumptions about Multichain were to be confirmed. And yet, almost all the ingredients are together. An impossible-to-locate CEO, client funds stuck in the network, insolvency issues… all suggest that Multichain will turn into a fiasco very quickly.
Multichain, a rug pull on the horizon?
Did Binance smell the coming crisis when it decided to suspend the deposits of 10 bridged tokens affiliated with Multichain? In any case, many doubt at the moment a remake of the FTX scenario with this platform.
” In the last two days, the Multichain protocol has experienced many problems due to unforeseeable circumstances. The team has done everything possible to keep the protocol running, but we are currently unable to contact CEO Zhaojun and obtain access to the server for maintenance.
This afternoon, there was an issue with Router5’s scanning node network, which affected standard cross-chain service for some channels. Additionally, this issue is beyond the team’s current permissions and capabilities. In order to protect the interests of our users, we have decided to suspend the cross-chain service corresponding to the affected channel on the user interface. Last week the same problem occurred on Router2.
We appreciate the user’s understanding and ask our partners to stop directly calling Multichain protocol smart contracts on/to the affected chain for cross-chain operations.
All affected channels are:
Kekchain, PublicMint, Dyno Chain, Red Light Chain, Dexit, Ekta, HPB, ONUS, Omax, Findora, Planq. »
This official publication from the Multichain team is not trivial in the eyes of crypto-enthusiasts. Isn’t that how protocols like Celsius, FTX and the like indirectly prepared crypto investors for their own downfall?
The CEO is nowhere to be found
In a recent publication, Decrypt revealed that Multichain’s CEO Zhaojun has given no further signs of life. Some observers put forward the thesis of an arrest of the latter, along with several executives of the company, by the Chinese authorities.
But no matter where it is, its absence harms Multichain and its partners. It is indeed impossible to access the protocol servers without Mr. Zhaojun.
On his side, Cointelegraph clarified that this situation undeniably affects Gate.io. The crypto-blockchain media indeed specified that the Twitter community unveiled large transactions from FTM and MULTI to this centralized crypto exchange. Gate.io however denied the existence of a link between the two.
We are not unaware that the same Gate.io saw the dubious transfer of 320,000 ETH from Crypto.com last year. So this suspicion of linking with Multichain will only make things worse for the exchange.
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