CEO arrested, ‘Multichain’ to shut down
The team of the cross-chain router protocol “Multichain” announced on the 14th that it will be closed due to lack of operating funds after CEO Zhaojun was arrested on May 21st.
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
The story so far
The multichain team said:
On May 21, 2023, Multichain CEO Zhaojun was taken from his home by Chinese police and has not been heard from since.
The team contacted the MPC node operator and learned that the operational access key to the MPC node server had been revoked. Moreover, these MPC node servers, like all other regular servers, were actually running on Zhaojun’s personal cloud server account.
He added that team members were unable to log on to these MPC servers used by the business because they did not have access to Mr. Zhaojun’s personal cloud server account.
As a result, the team continued to operate using limited non-MPC servers, but with the help of Zhaojun’s sister, they were able to access the cloud server from his home computer history.
However, on July 7th, user assets locked in the MPC address were illegally transferred to an unknown address.
The team explained that Mr. Zhaojun’s sister said that “the operation of transferring funds from the MPC address and the login information from the Kunming IP address were left on the cloud server platform.”
This fraudulent outflow has already been reported.
It was detected that 14.6 billion yen worth of virtual currency was withdrawn from the bridge, and the multi-chain team also explained that an abnormal remittance had been made. All users were asked to revoke all relevant contracts.
connection: Multichain Bridge, virtual currency equivalent to over 14.6 billion yen illegally leaked Revoke recommended to users
What is a bridge
Infrastructure and technology that allows different blockchains to interoperate with each other. One of the technologies for using a specific cryptocurrency on another blockchain is “Wrapped Tokens”. The technology locks up the original cryptocurrency and creates equivalent Wrapped Tokens, allowing various blockchains to leverage its cryptocurrency alternatives.
Sister detained by police
However, according to the team, on July 13, police detained Zhaojun’s sister, who was cooperating in server operations. She said she was unable to contact her because of this and the status of her archived assets is currently unknown.
Aside from the CEO’s sister, the team said, “We have no choice but to stop our activities because we have no one to provide relevant information and lack of operating funds.” In the future, if there is any further information or developments regarding the situation, we will keep the community informed.
It is currently unknown whether CEO Zhaojun and his sister were involved in the unauthorized leak on the 7th, as the two are in custody.