The Shutdown of Multichain and the Arrest of CEO Zhaojun
The recently hacked cross-chain router protocol Multichain has announced that it is shutting down due to a lack of operational funds and the arrest of its CEO, Zhaojun. The team confirmed that Zhaojun has been in the custody of Chinese police and has been out of contact since his apprehension. The team also revealed that all of Zhaojun’s personal belongings, including computers, phones, and hardware wallets, have been confiscated by the authorities.
Key Points:
- Zhaojun, the CEO of Multichain, has been arrested by Chinese police and is in custody.
- All operational access keys to MPC node servers have been revoked, as they were under Zhaojun’s control.
- Zhaojun’s personal belongings, including computers and hardware wallets, have been confiscated by the authorities.
- The Multichain team refrained from disclosing unauthorized information about the case to the public.
- Daily operations were conducted with the help of existing access to servers and assistance from Zhaojun’s sister.
The $130M Exploit and Unraveling
Prior to the shutdown, Multichain, previously known as Anyswap, had already suffered an $8 million exploit in 2021. Rumors about the management team’s arrest began circulating in late May, and the situation escalated after a $130 million exploit took place. The status of the preserved assets, which were transferred by Zhaojun’s sister, remains uncertain.
Hot Take:
This unfortunate incident highlights the risks associated with the crypto industry, where hacks and arrests can have a significant impact on projects and investors. It serves as a reminder for individuals to exercise caution and due diligence when participating in the crypto market.
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