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

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

In a stunning turn of events, Multichain, a prominent cross-chain router protocol, has been forced to shut down after a series of unfortunate incidents that have rocked the organization to its core. The primary cause behind the closure is the arrest and subsequent detention of Multichain’s CEO, Zhaojun. This unexpected development has sent shockwaves through the blockchain community and left the company’s future hanging in the balance.

CEO’s Arrest and Communication Breakdown

On the 21st of May, Chinese police officials apprehended Zhaojun at his residence, cutting off all communication between him and the Multichain team. Disturbingly, it was discovered that the operational access keys to the MPC node servers had been revoked, and these servers were found to be running under Zhaojun’s personal cloud server account. As a result, no member of the team could log in to these crucial servers, leaving them without control over the platform’s operations.

Further exacerbating the situation, it was revealed that all of Zhaojun’s properties had been confiscated by the authorities, along with the funds and investments belonging to Multichain, including the team’s own resources. This left the team in a state of helplessness, as they were unable to access critical assets and financial resources necessary to continue the company’s operations.

Unveiling a Disturbing Twist

In an alarming twist, it was recently discovered that Zhaojun’s sister played a pivotal role in the alleged misappropriation of funds. Early this month, user assets locked on the MOC address were mysteriously transferred to an unknown wallet. Investigation revealed that Zhaojun’s sister was behind this operation. The team at Multichain was informed by Zhaojun’s sister herself, who subsequently notified them and several project parties of her actions.

To compound the chaos, Zhaojun’s sister has also been taken into custody and is currently out of contact with the Multichain team. This further complicates the situation, as the team is left in the dark regarding the whereabouts and actions of both the CEO and his sister. As a result, the team has made the difficult decision to halt all ongoing operations on the network, pending further solid information from alternative and credible sources.

Seeking Community Support

With no access to domain accounts, the Multichain team is appealing to the community for help. They are urging community members to amplify their complaints and reach out to GoDaddy, a leading domain registrar, in an attempt to bring down the official website. This desperate plea for assistance underscores the dire circumstances faced by the Multichain team.

As Multichain’s operations come to a standstill, the company’s future hangs in the balance. The loss of control over key assets and the alleged movement of funds totaling a staggering $220 million have dealt a severe blow to the once-promising cross-chain router protocol. The blockchain community awaits further updates and hopes for a resolution that will shed light on the truth behind these shocking events.

As the investigation unfolds and legal authorities work to resolve the case, the fate of Multichain remains uncertain. The ripple effects of this unfortunate series of events will undoubtedly be felt throughout the industry, emphasizing the need for transparency, accountability, and robust governance in the blockchain ecosystem.

The closure of Multichain serves as a stark reminder of the risks inherent in the rapidly evolving world of cryptocurrencies and blockchain technology. It underscores the importance of due diligence, thorough regulatory oversight, and responsible leadership to maintain trust and stability within the industry. The fallout from this incident will undoubtedly reverberate, prompting a renewed focus on safeguarding investor funds and strengthening corporate governance practices across the blockchain landscape.

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