The team behind the cross-chain protocol Multichain (MULTI), which allows users to transfer assets between different blockchains, has issued a statement on Twitter regarding the status of their services.
The announcement came after rumors that the team had been arrested by Chinese authorities and that $1.5 billion worth of funds had been confiscated.
The rumors about the altcoin came after users reported that multichain funds were not reaching them due to a backend node upgrade taking "longer than expected". In a previous statement, an administrator on the Multichain Discord channel wrote:
“While some routes (Kava, zkSync, Polygon zkEVM) are temporarily suspended, most routes are working as usual. All affected processes will arrive after the upgrade is complete. We sincerely apologize for the inconvenience caused.”
MULTI Altcoin Team Released Official Statement on Twitter
According to the latest statement on Twitter, while most of Multichain's cross-chain routes are working smoothly, some of them are unavailable due to force majeure and it is not known when the service will restart.
The team also assured users that pending transactions will be automatically credited after the service is restored, and Multichain will compensate users affected in the process. The compensation plan will be announced later.
The statement made no mention of the rumors of the arrest, which caused a significant drop in the price of Multichain's native token, MULTI.
While most of the cross-chain routes of Multichain protocol are functioning well, some of the cross-chain routes are unavailable due to force majeure, and the time for service to resume is unknown. After service is restored, pending transactions will be credited automatically.…
— Multichain (Previously Anyswap) (@MultichainOrg) May 24, 2023
On Twitter, some users reported that after they started using Multichain for cross-chain transfers, their money got stuck and they were blocked from the official Multichain Telegram group after raising the issue.
After the last announcement, there was fluctuation in the price of MULTI.
*Not investment advice.
