The Multichain platform acknowledged the fact that the company’s CEO Zhao Jun was arrested in China. Also, the funds placed on the site in the amount of $220 million, some of which were withdrawn by the detainee’s sister, came under the control of the authorities.
At the same time, the rest of the employees lost access to the servers, since they do not have Jun’s personal account. Later it turned out that law enforcement officers confiscated computers, phones, hardware wallets and mnemonic phrases.
The Multichain team was silent about the arrest for a long time. At the end of May, the organization only confirmed that they had lost contact with the CEO. The publication states that this was a requirement of the authorities.
In early June, the team managed to restore access to the cloud servers with the help of the detainee’s family. But they only allowed troubleshooting in Router2 and Router5. This was the cause of a major outage at the end of May.
At the same time, the employees were assured that Jun would be released. That is why they supported the work of the platform to the extent possible. However, already on July 7, user funds placed at MPC addresses were withdrawn from the site.
At the same time, information appeared that the platform was allegedly hacked. Two days later, the detainee’s sister transferred the remaining funds to these two addresses:
- 0x1eed63efba5f81d95bfe37d82c8e736b974f477b;
- 0x6b6314f4f07c974600d872182dcde092c480e57b.
This movement of capital was also recorded. Against the backdrop of the news, rumors spread about a possible rug pull.
On Thursday, July 13, the girl was arrested. What she is accused of at the time of writing is unknown. Also, the status of the funds that she managed to transfer is not completely clear.
In total, under the control of the Chinese authorities, presumably about $ 220 million of project funds. Due to the lack of additional information, access to MPC, as well as money, the Multichain team stops the platform. Customers are asked to refrain from using it.
Source: Cryptocurrency
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