China allegedly arrests Multichain team

China allegedly arrests Multichain team

Speculations arise that the Chinese police have arrested Multichain’s development team and may control their hardware/cold wallet containing around $1.5 to $1.6 billion in funds, causing sharp price plunges and fears for projects with high exposure such as Fantom.

Speculation within the Chinese cryptocurrency community suggest that the police arrested the development team for the Multichain network. The Chinese police can potentially likewise control the network’s hardware/cold wallet.

According to the speculative statements, the wallet involves around $1.5 to $1.6 Billion in funds.

The past few sentiments were highlighted on Twitter platform by @btcinchina:

Nonetheless, regardless of the speculation, the project’s co- founder noted in a Telegram community that the team is in good condition. The co- founder Alfred Xu likewise stated that business is ongoing normally, and the troubled route will be restored autonomously. 

The hearsay stems from recent reports that the network was experiencing some minor transaction delays, with customers waiting for withdrawals for over 24 hours. Multichain’s team mentioned that their router for the bridge was impacted. Nonetheless, they were already doing some upgrades.

A blockchain tech investigator was known BoringSleuth looked at the implication of the rumored arrest of Multichain’s team members. The detective mentioned that the arrest is huge, citing that if the arrest is valid, then one of the largest criminal organizations within cryptocurrency has been arrested. The group members are connected to 10+ rug pulls according to the investigator. 

The transaction delays sparked strong criticism from the community. Multichain’s crypto token, MULTI, suffered sharp price plunges during a concise duration, dropping by nearly 7 percent in 24 hours.

MULTI price action. Source: Coingecko
Multichain crypto token price | Source: CoinGecko

Looking at networks with the highest exposure to Multichain

The word-making rounds concerning issues within Multichain led to fears of the worst for the network. As a result, some began compiling lists of projects with the highest exposure to Multichain. 

According to the reports, the project with the most exposure is Fantom. About 35 percent of Fantom’s TVL is locked in Multichain. Furthermore, the reports indicate that a major part of Fantom’s assets is announced via the Multichain bridge.

Multichain team allegedly arrested in China - 2
Source: An Ape’s Prologue on Twitter

The numbers indicate that Fantom’s assets associated with multichain, including FTM, total about $650 million.

Other projects with miniature exposure to the network include BSC, Optimism, Kava, Avalanche (AVAX), Ethereum (ETH), Arbitrum, and Polygon, in precisely that order.


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