Multichain’s MULTI Token Plunges 30% Following Rumored Arrest of Development Team

In recent days, the crypto community has been buzzing with concerns about stuck transactions on Multichain since May 21st. Meanwhile, the project has stated that the difficulties stem from ongoing upgrades and delayed node updates for the cross-chain routing system.

“The node upgrades are taking longer than anticipated. Most routes are functioning normally. However, some routes, including Kava, zkSync, and Polygon zkEVM, are temporarily suspended. This has impacted all transactions until the upgrades are completed,” Multichain announced on May 23rd.

Furthermore, an administrator in Multichain’s Telegram account emphasized that only one router is currently undergoing upgrades, while the other six routers are still operating smoothly.

“We are working with the final router. Everything will return to normal once this process is completed,” the administrator stated.

Additionally, the individual confirmed that users’ funds are currently safe and will be processed after the upgrades are completed. However, prior to this incident, the price of MULTI, the token of the protocol, plummeted nearly 30% and is currently trading at around $5.

Price of MULTI drops sharply by nearly 30% | Source: CoinGecko.

On the other hand, analysts at Lookonchain reveal that several entities are involved in this matter. The platform suggests that these individuals may be connected to the selling activity of Multichain tokens on centralized and decentralized exchanges in recent days.

One notable transaction sent 494,200 MULTI (worth $2.75 million) to the Gate.io exchange. Furthermore, Lookonchain also unveiled another transaction from an ENS domain-affiliated wallet address named “hwg.eth.” This individual sold 36,200 MULTI tokens (valued at $200,000) on May 23rd alone.

Meanwhile, the Fantom Foundation withdrew 450,000 MULTI (approximately $2.4 million) from the SushiSwap exchange.

Of particular concern, the cryptocurrency community is abuzz with rumors that the development team of Multichain has been arrested by Chinese authorities, with assets worth $1.5 billion seized. Currently, the project has yet to respond to these allegations.

This series of events has shaken investor confidence in Multichain, leading to a significant drop in the price of the MULTI token. As the project faces technical challenges, users eagerly await updates and resolutions to restore normalcy to the cross-chain protocol and regain stability in the market.

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