Based

Multichain

<p class="is-style-lead">Rumors within the Chinese crypto community suggest that the police arrested the development team for the Multichain network. The Chinese police might also control the network&#8217;s hardware/cold wallet.</p>



<p class="is-style-default">Based on the speculative statements, the wallet involves around $1.5 to $1.6 billion in funds.</p>



<p>The recent sentiments were highlighted on Twitter by <a href="https://twitter.com/btcinchina" target="_blank" rel="noreferrer noopener">@btcinchina</a>:</p>



<figure class="wp-block-image size-full"><img decoding="async" width="1180" height="658" src="https://crypto.news/app/uploads/2023/05/Screenshot-2023-05-25-at-17.32.01.png" alt="Multichain team allegedly arrested in China - 1" class="wp-image-14161488"><figcaption class="wp-element-caption">Source: Gwei Research on Twitter</figcaption></figure>



<p>However, despite the speculation, the project&#8217;s co-founder noted in a Telegram community that the team is in good condition. The co-founder Alfred Xu also indicated that business is ongoing normally, and the troubled route will be restored autonomously.&nbsp;</p>



<p>The hearsay stems from recent reports that the network was <a href="https://crypto.news/multichain-sees-significant-token-drop-amid-ongoing-transaction-delays/" target="_blank" rel="noreferrer noopener">experiencing</a> some minor transaction delays, with customers waiting for withdrawals for over 24 hours. Multichain&#8217;s team mentioned that their router for the bridge was impacted. However, they were already doing some upgrades.</p>



<p>A blockchain investigator called <a href="https://twitter.com/BoringSleuth/status/1661399578313211905" target="_blank" rel="noreferrer noopener">BoringSleuth</a> looked at the implication of the rumored arrest of Multichain&#8217;s team members. The detective mentioned that the arrest is huge, citing that if the arrest is valid, then one of the largest criminal organizations within crypto has been arrested. The team members are connected to 10+ <a href="https://crypto.news/learn/what-is-a-rug-pull-in-crypto/" target="_blank" rel="noreferrer noopener">rug pulls</a> based on the investigator.&nbsp;</p>



<div class="cn-block-related-link">

    <svg class="cn-block-related-link__icon icon" aria-hidden="true">
        <use xlink:href="#icon-bookmark"></use>
    </svg>

    
        <span class="cn-block-related-link__prefix">
            You might also like:
        </span>

    
    
        <a href="https://crypto.news/china-to-push-reforms-with-new-financial-watchdog/" class="cn-block-related-link__link">
            China to push reforms with new financial watchdog        </a>

    
</div>


<p>The transaction delays sparked strong criticism from the community. Multichain&#8217;s token, MULTI, suffered sharp price plunges within a concise duration, dropping by nearly 7% in 24 hours.</p>



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="1366" height="768" src="https://crypto.news/app/uploads/2023/05/image-67.png" alt="MULTI price action. Source: Coingecko" class="wp-image-14161365"/><figcaption class="wp-element-caption">Multichain token price | Source: <a href="https://www.coingecko.com/en/coins/multichain" data-type="URL" data-id="https://www.coingecko.com/en/coins/multichain" target="_blank" rel="noopener">CoinGecko</a></figcaption></figure>



<h2 class="wp-block-heading" id="looking-at-networks-with-the-highest-exposure-to-multichain">Looking at networks with the highest exposure to Multichain</h2>



<p>The word-making rounds concerning issues within Multichain led to fears of the worst for the network. As such, some began compiling lists of projects with the highest exposure to Multichain. </p>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="What Is Multichain (MULTI)?｜ Explained for Beginners" width="1020" height="574" src="https://www.youtube.com/embed/lrN9B6wxB-Y?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
</div></figure>



<p>Based on the reports, the project with the most exposure is Fantom. About 35% of Fantom&#8217;s TVL is locked in Multichain. Furthermore, the reports indicate that a major part of<a href="https://twitter.com/apes_prologue/status/1661489464798072832" target="_blank" rel="noreferrer noopener"> Fantom&#8217;s</a> assets is issued via the Multichain bridge.</p>



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="451" height="402" src="https://crypto.news/app/uploads/2023/05/image-66.png" alt="Multichain team allegedly arrested in China - 2" class="wp-image-14161364"><figcaption class="wp-element-caption">Source: An Ape&#8217;s Prologue on Twitter</figcaption></figure>



<p>The numbers indicate that Fantom&#8217;s assets associated with multichain, including FTM, total about $650 million.</p>



<p>Other projects with miniature exposure to the network include BSC, Optimism, Kava, Avalanche, Ethereum, Arbitrum, and Polygon, in precisely that order.</p>



<div class="cn-block-related-link">

    <svg class="cn-block-related-link__icon icon" aria-hidden="true">
        <use xlink:href="#icon-bookmark"></use>
    </svg>

    
        <span class="cn-block-related-link__prefix">
            You might also like:
        </span>

    
    
        <a href="https://crypto.news/ledger-delays-release-of-private-key-recovery-service/" class="cn-block-related-link__link">
            Ledger delays release of private key recovery service        </a>

    
</div>

Multichain team allegedly arrested in China

Table of Contents

crypto.news

Other articles published on May 25, 2023

NFT Community Awaits Another Milady Pump From Elon Musk

Be Early To The Next 100x With These 5 Crypto Launchpads

What is DeFi 2.0? – A Beginner’s Guide

Pakistan’s Pioneering Journey Towards an AI-Driven Future: A Million AI Trained IT Graduates by 2027

Japan to Enforce Cryptocurrency Anti-Money Laundering Laws in June, Report Find

The $DONS Recap 25.05.2023

Join our free newsletter for daily crypto updates!