Multichain, a cryptocurrency project specializing in linking different blockchains, has announced that it has ceased operations after the disappearance of its founder and CEO, who was reportedly arrested by Chinese authorities.
CEO of Cryptocurrency Project Multichain Arrested, Operations Suspended
The company made the announcement via a Twitter post today, detailing the sudden disappearance of Multichain's founder and CEO, Zhaojun, in late May.
1. On May 21, 2023, Multichain CEO Zhaojun was taken away by the Chinese police from his home and has been out of contact with the global Multichain team ever since. The team contacted the MPC node operators and learned that their operational access keys to MPC node servers had…
— Multichain (Previously Anyswap) (@MultichainOrg) July 14, 2023
Multichain operates as a crypto bridge and allows users to exchange digital tokens between multiple blockchains. The project aimed to facilitate interoperability and seamless transactions between different blockchain networks.
The decision to close the company comes after experiencing a significant outflow of funds following the disappearance of its CEO. The total value locked in the Multichain platform fell to $139 million, marking a significant loss in investor confidence and trust.
The circumstances surrounding Zhaojun's arrest and the reasons behind it remain unclear.
However, this incident highlights the regulatory challenges and risks faced by crypto projects operating in various jurisdictions, particularly in China, where authorities have taken a strict stance on cryptocurrency-related activities.
The shutdown of Multichain is a reminder of the volatility and uncertainty inherent in the cryptocurrency industry.
Investors and users are advised to be vigilant and conduct thorough due diligence before participating in any cryptocurrency project or platform.
As the cryptocurrency market continues to evolve and regulatory frameworks are created, events like these highlight the importance of compliance and transparency in the industry.
It also highlights the need for clear rules and safeguards to protect the interests of investors and users.
*Not investment advice.