Cross-chain project Multichain confirms CEO detention by Chinese police
Cross-chain project Multichain has confirmed that its CEO Zhaojun has been detained by Chinese police and remains in custody. The project revealed that the police confiscated Zhaojun’s computers, phones, hardware wallets, and mnemonic phrases, which has caused significant issues for the project’s operations. The servers running the project’s multi-party computation were controlled by Zhaojun’s personal cloud server account, resulting in restricted access for those responsible for signing transactions. As a result, the project was initially unable to fix technical issues. Furthermore, all operational funds and investor funds were under Zhaojun’s control and are now in the possession of the Chinese police.
Key Points:
- Zhaojun’s detention by Chinese police has disrupted Multichain’s operations
- Police confiscated Zhaojun’s devices and restricted access to project servers
- All operational and investor funds are now with the Chinese police
- Engineers managed to fix technical issues using historical information on Zhaojun’s home computer
- Zhaojun’s sister transferred remaining user assets into new wallets under her control
The Multichain project recently experienced abnormal movement of funds and a login from an IP address in Kunming, China. Zhaojun’s sister is believed to be involved in these actions and was subsequently taken into custody by Chinese police. The project’s future is uncertain, and it has been forced to cease operations due to the lack of alternative sources of information and operational funds. Multichain also explained that it did not disclose Zhaojun’s detention earlier due to local laws and regulations.
Hot Take
The detention of Multichain’s CEO and the subsequent actions by Zhaojun’s sister have had a severe impact on the project, leading to the cessation of operations. This incident highlights the potential risks and vulnerabilities in the cryptocurrency industry, emphasizing the importance of robust security measures and decentralization to mitigate such threats. It also raises concerns about the regulatory environment in China and its impact on the development and maintenance of blockchain projects.
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