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24h MULTI price chart. Source: CoinMarketCap
FUDs continued to erupt after the failure of this bridge as some users noted the slowness of Multichain cross-chain transfers. The team explained that the main reason was due to the back-end side of the project.
On May 23, the project announced that the bridge was not available for some chains. The project is upgrading and repairing but the completion time has not been determined, the affected people will be compensated. But up to now the user money has not been paid. Some of the affected routes are Kava, zkSync & Polygon zkEVM. However, most other remittance routes are still operating normally.
As mentioned in the previous Coincu News article, yesterday there were rumors that the CEO and CEO of Multichain, Zhao Jun, had suddenly disappeared and cut off all communication. However, on May 24, his Twitter account was still active when he shared a project plan.
Then, there were rumors that the Multichain team in China had been arrested by the authorities, and this information caused a stir on Twitter on the evening of May 24. Thereby, according to a Chinese source, the project team was arrested and the project’s cold wallet with $1.5 billion in assets is being controlled.
听到消息 Multichain 据说是被抓了，冷钱包被控制，大概 1.5B 的资金
看了链上数据，其中大部分是 FTM 链上的资金，同时跨链桥交易量从4M 降到了 7K..https://t.co/n1UCFYNFEk
种种迹象都佐证出问题了，有 FTM 链资产的速度跑，不立围墙之下，避免无妄之灾 pic.twitter.com/MhRLrEskC7
— 愉悦 yuyue.lens 🦇🔊🐻⛓⚛️🚢 (@yuyue_chris) May 24, 2023
Before the questions raised, the project’s silence was the reason why many partners and investors decided to get out of this deep hole.
Lookonchain has detected the transfer of MULTI tokens to the Gate exchange by whale wallets. In addition, Fantom Foundation also had a strange move when withdrawing $ 2.4 million worth of MULTI tokens from the liquidity pool on SushiSwap.
An address related to the @MultichainOrgteam, 0xb4df, transferred 494,200 $MULTI (3.17M) [email protected]_io one hour ago.
Previously, Several users reported in Discord that their cross-chain assets have not arrived for a long time.
Currently, the price of $MULTI has dropped by 14%. pic.twitter.com/1xOAugnFCV
— 0xScope ( . ) (@ScopeProtocol) May 24, 2023
Note that Fantom Foundation Wallet has removed 449,740 $MULTI ($2.4M) from liquidity on Sushiswap 30 mins ago.
Very likely to sell off! #MultiChain https://t.co/pEcd5EmARb pic.twitter.com/M647xgOeNH
— Lookonchain (@lookonchain) May 24, 2023
The leading investor in the seed round, Binance, has also suspended the deposit port of 10 bridged token pairs due to an ongoing issue with the Multichain project.
We’ll be temporarily suspending deposits for the following bridged tokens-network while we await clarity from the Multichain team.
Deposits of the above assets on other networks are…
— Binance (@binance) May 25, 2023
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