Multichain, a crypto project connecting different blockchains, has announced it is ceasing its operations due to a lack of operational funds. The move came shortly after Multichain's missing founder and CEO was arrested by Chinese police without citing any reason. In May, Multichain revealed that it was unable to reach its CEO, causing several partners, including crypto exchange Gate.io, to experience issues and outages. - In early July, the firm saw an unexpected asset outflow of over $120M.
- The massive outflow was followed by an additional $103M outflow as the CEO's sister moved remaining user assets to wallets under her control.
- The sister of the CEO, also known as Zhaojun, was also taken into custody.
- Besides, Chinese police seized the CEO's all computers, phones, hardware wallets, and mnemonic phrases used to access these wallets.
- In a tweet, the Multichain team said all operational funds, investments, and access to servers have been under Zhaojun's control since the project's launch and, thus, are with the police now.
Before halting its operations, Multichain allowed users to transfer crypto assets between different blockchains. |
