• Multichain has halted its operations following the arrest of its CEO, Zhaojun.
• All MPC nodes and ordinary servers were being run under the CEO’s personal account, and operational funds and investments were also under his control.
• The Multichain team is unable to maintain operations as they lack information about the case.
Multichain Halts Operations Following Arrest of CEO
Multichain (MULTI), a cross-chain protocol, has announced that it is ceasing operations following the arrest of its CEO, Zhaojun, and his sister by Chinese police. All MPC nodes and ordinary servers were running under Zhaojun’s personal account and operational funds and investments were also under his control. As a result, the Multichain team is unable to maintain project operations due to their lack of information on the case.
Zhaojun Detained Since May
The protocol explained that Zhaojun had been unvailable since May which impacted their operation significantly. This resulted in all operations taking place with reduced access due to security protocols which had been put in place prior to his arrest.
Impact on MULTI Price
Following this announcement, MULTI price dropped by 15%. The price at press time was $0.23 after peaking at an all-time high of $0.32 earlier this month according to data from CoinGecko.
The Multichain team has stated that they will continue working towards bringing innovation into distributed ledger technology (DLT) space regardless of the current situation but have not yet provided any further details on their plans for doing so.
It remains uncertain how long it will take for operations to resume as there is currently no information available regarding the case against Zhaojun or when he may be released from custody if at all. Until then, investors are advised to exercise caution when dealing with MULTI tokens until more information comes out about this case in future updates from Multichain or Chinese authorities respectively.