Multichain CEO Shows Signs of Activity on Telegram
Zhaojun He, the co-founder and CEO of Multichain, has recently shown signs of activity on Telegram after a period of inactivity following his detention by Chinese authorities in May 2023. As of January 16, 2024, Zhaojun’s Telegram profile indicated he was “last seen recently,” suggesting recent engagement with the account.
Multichain Incident and Its Aftermath
Zhaojun’s detention last year caused concern within the crypto community as he had centralized control over Multichain’s assets and servers. Unauthorized transfers and withdrawals from user accounts on Multichain were reported following his arrest. Andre Cronje, co-founder of Fantom protocol and a victim of the incident, revealed that Chinese police were investigating a large-scale scam involving stolen funds bridged via Multichain.
Legal Efforts and Regulatory Challenges
Fantom is actively working with law firms in Singapore to recover the misappropriated assets. However, their efforts in Mainland China are facing obstacles as they struggle to represent all affected users in legal proceedings. The Chinese government’s strict approach to Web3 and blockchain firms has intensified since last year, focusing on operations within Mainland China where cryptocurrencies are illegal. This crackdown has reduced instances of money laundering and crypto scams but has also affected foreign investors and users of Chinese blockchain protocols not involved in criminal activities.
Hot Take: Multichain CEO Resurfaces on Telegram After Detention
Zhaojun He, the co-founder and CEO of Multichain, has shown signs of activity on his Telegram account after being detained by Chinese authorities. This development follows reports of unauthorized transfers and withdrawals from user accounts on Multichain during his absence. Fantom, a protocol affected by the incident, is working to recover the misappropriated assets through legal efforts. However, they are facing challenges representing all affected users in Mainland China due to regulatory and legal hurdles. The Chinese government’s crackdown on Web3 and blockchain firms has impacted foreign investors and users who were not involved in criminal activities.
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