There seems to be no end to the problems at Multichain, with the team unable to reach the protocol’s CEO and gain the necessary server access for maintenance works.
The Multichain team has been trying its level best to keep the protocol running.
Where Is The Multichain CEO?
Last week, rumors that Chinese authorities had arrested several Multichain executives began doing the rounds. According to the rumors, the arrested executives included Zhaojan, the protocol’s Chief Executive Officer. While the integrity of these reports has not yet been confirmed, and the authorities have neither confirmed nor denied the reports, Binance responded to the news and suspended specific token deposits. Multichain has been facing days of continued outages, with several transactions in limbo due to multiple cross-chain pathways that are offline.
Furthermore, it was also rumored that law enforcement officials have taken control of a wallet containing $1.6 billion belonging to Multichain, according to several Twitter accounts.
“According to the rumors earlier today in the Chinese community, it is said that the core members of the Multichain team were arrested by Chinese police, and the cold wallet was controlled, involving about $1.5 billion in funds.”
Problems Continue
According to Multichain’s Twitter account, the problems currently facing the protocol began on Monday, with the team stating that the protocol has been experiencing several issues thanks to unforeseen circumstances. The team stated that despite the team’s best efforts to maintain the protocol and keep it running, they could not reach their CEO to access critical servers and carry out maintenance.
“In the past two days, the Multichain protocol has experienced multiple issues due to unforeseeable circumstances. The team has done everything possible to maintain the protocol running, but we are currently unable to contact CEO Zhaojun and obtain the necessary server access for maintenance.”
According to the team, the latest set of issues was triggered by problems arising from a network of nodes within the Multichain protocol. This was impacting cross-chain services for several blockchains, including PublicMint, Dyno Chain, Keychain, Dexit, Red Light Chain, Ekta, ONUS, HPB, Omax, Planq, and Findora.
“This afternoon, there was an issue with the scanning node network of Router5, which has affected the normal cross-chain service of some chains. Furthermore, this problem is beyond the team’s current permissions and ability. In order to protect the interests of our users, we have decided to suspend the corresponding cross-chain service for the affected chain on the UI. Last week, the same issue happened on Router2.”
MULTI Token Relatively Unaffected Over Past 24 Hours
The Multichain team has asked partners to stop calling smart contracts running on Multichain until they can get the permissions to access the protocol servers. Despite the gloomy news, the protocol’s MULTI token has fared relatively well, reporting an increase of over 3%. Currently, the token is trading at $4.07. However, the token has lost over 19% of its value since Multichain’s problems began.
Multichain was previously known as Anyswap before suffering a major exploit in 2021. However, it made a strong recovery, becoming one of the largest blockchain bridges in the crypto space, with transaction volumes hitting the $100 billion mark. Multichain facilitates the exchange of tokens across several major networks, including Polygon, Ethereum, Binance Chain, and Avalanche. Head of product at Coinbase, Conor Grogan, tweeted that the problems at Multichain will impact only a small number of users, highlighting the low transaction outputs on the networks.
Crypto Twitter is also nervous about rumors that Gate.io is facing liquidity issues, although the company has denied the reports.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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