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MULTICHAIN SHUTDOWN OPERATION
Due to a lack of operational funds, the team has been compelled to announce the shutdown of their services. This financial strain became especially acute when Zhaojun’s sister was also taken into police custody, further complicating the situation. The team expressed their regret in having to discontinue operations and stated that without alternative sources of information and adequate operational funds, they had no choice but to take this step. They promised to keep the community updated if there are any changes in the future.
Moreover, the Multichain team has lost control of the domain account, preventing them from redirecting or bringing down the website. As a result, they urgently requested users to refrain from using the Multichain service to avoid any further complications.
The primary reason for the depletion of operational funds lies in the fact that Multichain’s Multi-Party Computational (MPC) node servers were operated under Zhaojun’s cloud server account. As a consequence of his arrest, the team faced difficulties with numerous transactions getting stuck, as they were unable to reach Zhaojun. This situation led to a crypto firm suspending deposits for 10 swaps on Multichain and ceasing support for eight Multichain Bridge tokens.
Finally, after some time, Zhaojun’s family successfully gained access to the cloud servers. Subsequently, his sister facilitated the transfer of users’ assets to an externally-owned account (EoA) address. However, the team’s challenges did not end there. On July 13, after Zhaojun’s sister was also taken into custody, the team lost access to the funds necessary for their operations.
Adding to the troubles, Multichain suffered a staggering $126 million exploit, raising suspicions of whether this was a hack or an inside job. This raised questions among the community about the true decentralization of Multichain, given that the MPC servers were under the control of a single person – Zhaojun.
The entire situation has left Multichain in a state of turmoil, with operations suspended, and users’ trust shaken. The fate of the platform remains uncertain as investigations and repercussions unfold.
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