Multichain Suspends Cross-Chain Routes Amidst CEO Zhaojun’s Unavailability

In a recent announcement on Twitter, the Multichain development team declared the temporary suspension of their cross-chain routes, citing the inability to maintain certain connections without CEO Zhaojun granting server access.

Multichain is one of the largest bridge protocols in the cryptocurrency ecosystem. Speculations arose following the sudden halt of several cross-chain routes on the platform over a week ago, leading to rumors of the project’s development team being apprehended by Chinese authorities. As of now, the developers have revealed their unsuccessful attempts to establish contact with Zhaojun.

On Twitter, the team stated, “In the past two days, the Multichain protocol has experienced multiple issues due to unforeseeable circumstances. The team has done everything possible to maintain the protocol running, but we are currently unable to contact CEO Zhaojun and obtain the necessary server access for maintenance.”

The recent disruption in the Router5 scanning node network this afternoon has affected the normal cross-chain service of some chains. Moreover, the issue surpasses the team’s current permissions and capabilities. In order to safeguard the interests of their users, Multichain has decided to suspend the corresponding cross-chain service for the affected chains on the user interface. A similar problem occurred last week with Router2.

The list of affected chains includes Kekchain, PublicMint, Dyno Chain, Red Light Chain, Dexit, Ekta, HPB, ONUS, Omax, Findora, and Planq. This has further fueled speculation within the community that at least one key member of Multichain has indeed been detained by the authorities. DJ Quian, the project’s co-founder, inquired about Zhaojun’s situation, but instead of providing a clear answer, the developers responded, “He is not here.”

In a Telegram message with the Multichain group, Mog, Multichain’s Deputy Vice President of Strategic Partnerships, expressed his unawareness of whether the project’s leaders have been arrested, promising to relay any news once received. Since the issue arose last week, Zhaojun has not responded to Telegram messages from the media or his colleagues.

Users on Telegram and Discord channels of the project continue to demand answers, questioning the true meaning behind the “unforeseeable circumstances” mentioned on Twitter. In the Chinese Telegram channel, an administrator named Meng advised users to “wait for Zhaojun’s return” to sign transactions related to protocol upgrades.

The Multi token (MULTI) of Multichain has been trading around $4.11, experiencing a 48.4% decrease over the past 14 days. On May 24, MULTI plummeted 30% from $7 to approximately $5 as users discussed transaction congestion on the cross-chain bridge protocol. Additionally, the Fantom Foundation withdrew $2.4 million worth of MULTI liquidity from the decentralized exchange SushiSwap, while HashKey Group transferred $250,000 to Gate.io exchange.

Four days after the first reported transaction congestion, the project finally addressed the issue on Twitter. However, they neither confirmed nor denied the rumors of the CEO and others being arrested. Despite the lingering uncertainty, Multichain’s commitment to compensation appears to have somewhat pacified users. Earlier this week, MULTI regained 35% of its value, reaching over $4.7 after hitting a low of $3.3.

While Multichain’s development team faces significant challenges and concerns surrounding the unavailability of CEO Zhaojun, the cryptocurrency community eagerly awaits further updates to shed light on the situation and the future of the cross-chain protocol.

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