Multichain, one of the world’s largest cross-chain bridge protocols, has announced it is ceasing operations. This news comes shortly after the protocol experienced an attack resulting in the mysterious withdrawal of $125 million from its wallets by what is suspected to be an insider.
According to a Chainalysis report, the July 6th withdrawals included $120 million from Multichain’s Fantom bridge. The blockchain security firm noted that the “unusually large, unauthorized withdrawals” appeared to be a rug pull.
Multichain has been in the news frequently since May when it was reported that its CEO, Zhaojun, had been arrested by the Chinese police. It was alleged that authorities confiscated “computers, phones, hardware wallets, and mnemonic phrases” when they took the CEO into custody. Notably, Zhaojun had control over all of the protocol’s operational funds and investments.
On July 13th, according to information provided by Zhaojun’s family, the police took Zhaojun’s sister into custody. With both individuals out of contact, the team believes it is necessary to inform the community of the known circumstances and that due to the lack of alternative sources of information and corresponding operational funds, the team is forced to cease operations.
The price of Multichain (MULTI) has decreased by 4% in the past 24 hours and 16% in the past week. With recent suspicions of a rug pull looming, it is likely that the price of MULTI will plummet further.
