No doubt, the crypto ecosystem is going through a dark new phase. Far from the legendary fall in asset prices, this time it is the CEOs of companies who are falling one after the other. After the general manager of Celsius, place to the CEO of Multichain. That’s it, the announcement is official!
Zhaojun, the CEO of Multichain in the hands of the Chinese police
The DeFi Multichain project has been going through difficulties for some time and finally, we know why. If the rumors on Zhaojun’s arrest were running, the team, which had not commented so far, spoke out. In a tweetMultichain has confirmed that the project manager has been under arrest in China since May 21, 2023.
This news comes shortly after numerous technical failures. Recall that earlier this year, the same team said it had lost contact with its CEO, which was why it could not resolve certain failures.
In the statement, Multichain reveals that operational access keys to Multi-Party Computation (MPC) node servers were seized during the arrest. Since these were running on Zhaojun’s personal cloud server account, no one had the access to fix the problem.
A disruption of activities that could last a long time
With the arrest of the CEO of Multichain, the project is unable to operate normally. According to statements, access to the server and all operational funds of the project are in the hands of the Chinese police. Additionally, on July 7, client funds were reportedly moved to unknown addresses. And two days later, Zhaojun’s sister transferred the rest of the assets to wallets she controlled before informing the team.
Therefore, even if Multichain was able to solve some persistent problems by accessing Zhaojun’s cloud platform, there are still too many gray areas. Thus, due to the lack of corresponding operating funds and alternative sources of information, the project ceased its activities indefinitely.
Although this decision is difficult, it is the best thing to do at the moment. A week ago, Multichain faced a multi-chain exploit. Between that, the arrest of the CEO and the embezzlement, the DeFi project can no longer hold up. However, the team says they will continue to update the community. But, the real problem here remains the reaction of the blockchains affected by this exploit.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
