For the first time since he was arrested in May 2023, Multichain CEO, He Zhaojun appeared recently active on Telegram. His arrest was linked with the collapse of a cross-chain bridging protocol valued $1.6 billion with funds of users transferred and withdrawn mysteriously.
Although Zhaojun’s Telegram activity does not prove his release, it led to speculation. Andre Cronje, the co-founder of a Large Multichain user, Fantom shed light on this situation.
He disclosed that Chinese police tracked the stolen funds to Multichain which resulted in arrests of node operators and asset seizure.
“This nuance is the core of the issue. As the stolen funds were “held” by Multichain, the majority of node operators were arrested and forced to hand over their access & keys. Using this access the police then seized the assets and are currently holding it as part of the ongoing investigation” He stated.
“This nuance is the core of the issue. As the stolen funds were “held” by Multichain, the majority of node operators were arrested and forced to hand over their access & keys. Using this access the police then seized the assets and are currently holding it as part of the ongoing investigation.”
While attempting to sue in Singapore, the example is an opportunity for Fantom. To get back at least some of the money will take several years due to investigations that are already proceeding and legal difficulties.
This case, however, presents challenges of using China-based blockchain protocols. The country’ harsh crackdown on Web3 and presumption of guilt in crypto-related cases are significant barriers for foreign investors.
Also Read: Beam Partners with Immutable & Polygon for Multichain Growth
