Multichain Operations Cease amidst CEO’s Arrest

The Troubled Journey of Multichain

Multichain, a prominent blockchain technology firm, has been forced to halt its operations following the arrest of its CEO, Zhaojun, on May 21, 2023. This unfortunate incident has led to significant operational difficulties as Zhaojun’s personal devices, which contain the keys to Multichain’s server access and financial assets, were seized.

Amidst the chaos, the Multichain team made significant efforts to keep the protocol running smoothly. However, they faced obstacles due to their inability to contact CEO Zhaojun and retrieve the necessary server access. As a result, the team has been left with no choice but to cease operations temporarily.

The Impact of Zhaojun’s Arrest

The arrest of CEO Zhaojun severely disrupted Multichain’s operations. All of the firm’s MPC node servers were linked to Zhaojun’s personal cloud account, creating an inability to maintain normal business activities. Furthermore, all funds and investments associated with Zhaojun are currently inaccessible.

To mitigate the situation, the Multichain team utilized the limited access they had to non-MPC servers and communicated transparently with their community regarding the ongoing issues. However, this measure proved insufficient to sustain the company’s operations efficiently.

Authorities confiscated all of Zhaojun’s computers, phones, hardware wallets, and mnemonic phrases, along with capturing the team’s funds and server access. This unfortunate turn of events hindered Multichain’s attempts to resume normal operations.

Unforeseen Transfer of Assets

On July 7, the team discovered that assets tied to MPC addresses had been transferred to unknown addresses. These transactions were traced back to an IP in Kunming, further adding to the operational challenges faced by Multichain. In response, the team advised its community to avoid using bridging services until the situation was resolved.

Complicating matters further, Zhaojun’s sister transferred the remaining user assets in the router pool to addresses under her control on July 9 as a precautionary measure. Unfortunately, she was also apprehended by the police on July 13, leaving the status of the assets she controlled uncertain.

A Final Blow and Request for Assistance

In light of these events, Multichain, due to insufficient funds and critical operational information, announced the cessation of all operations on July 13. The team has even sought assistance from GoDaddy in taking down the company’s domain.

Editor Notes: Promoting Uber Crypto News

It is disheartening to witness the downfall of a promising blockchain technology firm like Multichain. The incident serves as a reminder of the challenges and risks associated with this industry. To stay up-to-date with the latest developments and news in the cryptocurrency world, I highly recommend visiting Uber Crypto News. Their platform provides reliable and timely information to help you navigate the ever-evolving crypto landscape.

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