1. BITBILIHome
  2. Article

Multichain (MULTI) team locked out as CEO goes missing

• 96 views

TL;DR Breakdown

  • Multichain is facing operational issues due to inability to contact their CEO, Zhaojun, who holds crucial server access permissions.
  • Issues affecting their protocol include a problem with the scanning node network of Router5, disrupting cross-chain services. The team has suspended services for over 10 chains to protect users’ interests.
  • Amidst this, unconfirmed rumors surfaced on Twitter of Chinese police arresting the Multichain team and confiscating $1.5 billion in smart contract funds.

The turbulence surrounding Multichain (MULTI), a popular cross-chain protocol, hit a new peak as the team recently reported their inability to contact CEO Zhaojun, the sole possessor of critical server access permissions.

This sudden halt in operations coincides with unverified rumors of police arrests and substantial confiscation of funds.

Server access crisis paralyzes operations

Multichain’s team took to Twitter, explaining the trials they’ve been grappling with, which have manifested in multifaceted issues plaguing their protocol. Among these, a standout problem lies with the scanning node network of Router5.

This complication has disrupted the standard cross-chain service of several chains, with the team’s hands being tied due to their lack of access permissions. As a stop-gap measure to safeguard user interests, Multichain suspended the affected cross-chain services on their user interface.

These disruptions have affected an array of chains, with Kekchain, PublicMint, Dyno Chain, Red Light Chain, Dexit, Ekta, HPB, ONUS, Omax, Findora, and Planq taking the hit.

In a bid to mitigate further damage, Multichain has requested partners to cease invoking the smart contracts of the affected chains for cross-chain operations.

Murky waters ahead

As this server access fiasco unfolded, unverified rumors began to circulate on Twitter, hinting at possible legal trouble.

According to these speculations, the Chinese authorities have apprehended the Multichain team, with an astonishing $1.5 billion worth of smart contract funds reportedly confiscated.

Attempts to verify these rumors with the beleaguered Multichain team have been unsuccessful as of this report’s writing. The crypto community’s reaction to Multichain’s current predicament has been mixed, with some expressing their disappointment in what they view as a “backward step” from decentralization.

The inability to access servers and solve the problem has highlighted potential fragilities within the project’s structure. Changpeng Zhao, the CEO of Binance, also chimed in with a seemingly nonchalant tweet in response to Multichain’s announcement, saying “Stay SAFU.”

Knock-on effects on associated chains and tokens

As the dust begins to settle around the initial shock, significant consequences for associated chains and tokens have become evident.

In response to the lack of clarity around these issues, Binance proactively suspended deposits for ten bridged tokens on the BNB Smart Chain, Fantom, Ethereum, and Avalanche blockchain networks on May 25.

Concurrent with these actions, the Fantom Foundation extracted 449,740 MULTI, equivalent to $2.4 million, from liquidity on the decentralized exchange, SushiSwap.

Additionally, Lookonchain, a renowned blockchain analytics firm, reported smart money accounts causing $3 million worth of MULTI outflows last week.

With the Multichain team’s communication channels remaining unresponsive, the uncertainty surrounding this situation continues to mount. It is hoped that the dust will soon clear, providing some much-needed answers and a clearer path forward.

As always, investors and users are encouraged to stay vigilant and make informed decisions amidst these uncertain times.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:Multichain (MULTI) team locked out as CEO goes missing

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年6月4日 20:09
Next 2023年6月4日 21:54

Related articles

  • South Korea tightens grip on undeclared overseas crypto worth $99B

    TL;DR Breakdown South Korea’s tax agency reports that citizens and businesses hold around $99 billion in overseas crypto assets. A total of 1,432 individuals and entities are responsible for these crypto holdings. The Financial Services Commission is focusing on over-the-counter cryptocurrency transactions. Description South Korea’s tax agency has reported that citizens and businesses in the country hold approximately 131 trillion won, or around $99 billion, in overseas crypto assets. This staggering figure accounts for 70% of all offshore assets disclosed by South Koreans this year. Moreover, the tax authority revealed that 1,432 individuals and entities are behind these … Read more South Korea’s tax agency has reported that citizens and businesses in the country hold approximately 131 trillion won, or around $99 billion, in overseas crypto assets. This staggering figure accounts for 70% of all offshore assets disclosed by South Koreans this year. Moreover, the tax authority revealed that 1,432 individuals and entities are behind these substantial holdings. Besides crypto assets, the tax agency’s data showed South Koreans have significant investments in stocks, deposits, and savings overseas. 5,419 entities disclosed…

    Article 2023年9月21日

  • U.S. sends clear message on China’s ban of Micron chips

    TL;DR Breakdown The U.S. opposes China’s effective ban on Micron Technology’s memory chips, deeming it as economic coercion. U.S. Commerce Secretary Gina Raimondo voiced concerns over China’s actions and reaffirmed the U.S.’s commitment to work with allies on this issue. Raimondo highlighted the $52 billion CHIPS Act, which seeks to strengthen domestic semiconductor production in the country. In the global technology landscape, tensions are rising as the U.S. asserts its disapproval over China’s de facto prohibition on the acquisition of memory chips produced by Micron Technology. The clear message from the United States government is its unequivocal refusal to tolerate what it sees as “economic coercion” aimed at an American corporation. The situation: Micron’s plight and China’s unwelcomed stance On May 21, China’s cyberspace regulator declared that Micron, a leader in the U.S. memory chip manufacturing sector, had not passed its network security review. Consequently, the regulator declared its intention to prevent operators of crucial infrastructure from purchasing from the company. This move, which threatens to curtail Micron’s revenue, provoked a strong response from the government. Commerce Secretary Gina Raimondo…

    Article 2023年5月31日

  • Eurozone banks disappointed by rate hikes impact

    TL;DR Breakdown The impact of recent rate hikes has not lived up to expectations in the Eurozone banking sector, according to ECB Vice President Luis de Guindos. Despite facing a series of crises such as the failure of two mid-sized U.S. banks, the loss of confidence in Credit Suisse, and global financial turbulence, Eurozone banks have shown resilience. De Guindos highlights the strong fundamentals of the Eurozone banks across several key areas: profitability, resilience, and liquidity. Riding the wave of global financial turbulence, Eurozone banks have faced a series of shocks recently. While they have shown resilience in the face of these crises, the impact of the recent rate hikes has been a disappointment for the sector, according to the Vice President of the European Central Bank (ECB), Luis de Guindos. Eurozone’s financial agility amid global tensions De Guindos painted a vivid picture of the financial landscape at a banking conference in Spain. He traced the challenges back to the failure of two mid-sized U.S. banks and the loss of confidence in Credit Suisse earlier this year, which pulled the…

    Article 2023年5月20日

  • Congressman Tom Emmer proposes amendment to curb SEC’s crypto oversight

    TL;DR Breakdown U.S. Representative Tom Emmer sponsored an appropriations amendment aimed at limiting the SEC’s use of funds for digital asset enforcement, citing concerns over SEC Chair Gary Gensler’s approach to cryptocurrency regulation. Senator Bill Hagerty, a member of the Senate Banking Committee, also called for more hearings on the SEC’s treatment of digital assets, indicating bipartisan concern over the regulatory body’s current approach. Notable figures in the blockchain industry have expressed support for Emmer’s proposed legislation, which seeks to establish clearer regulations for digital assets and potentially remove Gensler from his SEC Chair position. Description United States Representative Tom Emmer, Majority Whip of the U.S. House of Representatives, sponsored an appropriations amendment on September 8 aimed at restricting the Securities and Exchange Commission’s (SEC) use of funds for digital asset enforcement. The move comes amid growing concerns over the SEC’s extensive legal expenditures in disputes with various cryptocurrency entities. In … Read more United States Representative Tom Emmer, Majority Whip of the U.S. House of Representatives, sponsored an appropriations amendment on September 8 aimed at restricting the Securities and…

    Article 2023年9月9日

  • What exactly does the SEC claim CZ did with BinanceUS?

    TL;DR Breakdown The U.S. SEC has proposed a freezing order on $2.2 billion of U.S. customer assets held by BinanceUS, citing potential misappropriation risks by founder Changpeng Zhao. The SEC alleges that BinanceUS and Zhao engaged in unregistered securities sales and commingled investor funds with their own. With over $2.2 billion of U.S. customer assets under scrutiny, BinanceUS and its founder, Changpeng Zhao, face allegations by federal regulators who believe these funds are under “significant risk” of misappropriation. The U.S. Securities and Exchange Commission (SEC) voiced its concerns and accusations in a recent legal filing, stating that immediate action must be taken to prevent possible illicit activities by Zhao and associated entities. The security freeze proposal: Federal regulators’ preventive approach This concern has motivated the SEC to propose a freezing order on the substantial assets under BinanceUS’s control. The regulator’s legal representatives have advocated for this action as a preemptive measure to mitigate potential capital flight risks. They’re calling for a swift judgment that allows U.S. customer assets to be repatriated and frozen, thus averting unauthorized transfers by Zhao or…

    Article 2023年6月12日
TOP