News

Multichain Users Left Confused as CEO Makes a Sudden Comeback

single-image
  • Zhaojun He, Multichain’s CEO, reappeared on Telegram after being detained by Chinese authorities for an extended period of time, leaving Multichain users and investors seeking answers.
  • On January 16, 2024, His Telegram status changed from “last seen a long time ago” to “last seen recently,” implying potential user activity and sparking speculation.
  • During He’s detention, Multichain users’ assets were mysteriously bridged to unknown addresses without their consent.

Stay in the know on crypto by frequently visiting Crypto News Today

Co-founder and CEO of Multichain, a cross-chain bridging protocol, Zhaojun He has made a surprise appearance on Telegram following an extended period of inexplicable detention by Chinese authorities starting in 2023. Due to this development, Multichain users and investors are looking for answers and clarification regarding their assets, which were surreptitiously and uninvitedly bridged to unidentified addresses while He was being detained.

CryptoCaster Quick Check:

Users noticed a big change to Zhaojun He’s Telegram profile on January 16, 2024. There was some user activity evident when his status changed from “last seen a long time ago” to “last seen recently.” While some users are hopeful that He may have regained access to his phone as a result of this development, others are cautious and believe that the police may still be involved in accessing his Telegram account to stop messages from being automatically deleted.

Concerns from investors and Multichain’s problems

The experience with Zhaojun He started when he was taken into custody by Chinese authorities on May 21, 2023, for unknown reasons. The users of Multichain were greatly impacted by his detention because he was the CEO and had centralized access to the company’s servers and assets. Investors were alarmed and perplexed when numerous users’ assets on Multichain were bridged to unidentified locations and removed without their permission during this period.

Advertisement

One of the biggest users and victims of the Multichain incident, Andre Cronje, co-founder of the Fantom protocol, provided some insight into the matter. Cronje clarified that the stolen funds were traced to Multichain by the local Chinese police as part of a larger scam investigation. Although Multichain was not involved in the scam directly, the protocol had “held” the stolen money. As part of the ongoing investigation, the police were able to seize the assets after most node operators were arrested and forced to give up their access and keys.

In reaction to these events, Fantom has started working to retrieve the stolen assets. To get the money back, they are working with law firms in Singapore, the country where Multichain was founded. However, because of their limited ability to act on behalf of all affected users, their efforts have run into difficulties within mainland China.

“With anything regulatory, legal, or based around a criminal investigation, these things often take years to resolve,” said Cronje, recognizing the complexity of the situation. Investors in Multichain are now uneasy and there is no clear way to get out of this unpleasant situation.

China’s offensive against blockchain and web 3

The dramatic events taking place are set against the backdrop of China’s severe crackdown on Web3 and blockchain companies doing business there. Since the start of 2023, Chinese authorities have taken severe action against these organizations, particularly in light of the nation’s official ban on cryptocurrencies. When these rules are broken, assets are seized and defendants are given the presumption of guilt until proven innocent.

Foreign investors who used Chinese blockchain protocols without intending to commit crimes have suffered collateral damage as a result of these actions, even though they have decreased money laundering operations and cryptocurrency scams. The Multichain incident serves as a clear illustration of the difficulties foreign companies encounter in this stringent regulatory framework.

Investor skepticism continues

Investors and users of Multichain are still unsure as Zhaojun’s reappearance on Telegram continues to spark rumors and questions. The Multichain community is feeling uneasy due to the CEO’s extended absence and the unexplained bridging of assets. Fantom’s attempts to retrieve the embezzled assets are beset by legal complications and a protracted resolution procedure, which provides investors with few instant answers.

Even though the world of cryptocurrencies and blockchain technology is still developing quickly, this event emphasizes how crucial security and regulatory compliance are to both users and investors. Awaiting any developments that could reveal on and put an end to this currently underway narrative, stakeholders will be closely watching the events surrounding Multichain and Zhaojun He.CRYPTOCASTER® - DECENTRALIZED FREEDOM!


We hope you appreciated this article. Before you move on, I was hoping you would consider taking the step of supporting CryptoCaster’s journalism. 

From  Elon Musk, Larry Fink(BlackRock) to Jamie Dimon(JP Morgan Chase) a number of billionaire owners have a powerful hold on so much of the hidden agendas’ which eludes the public concerning the paradigm shift juxtaposed by cryptocurrency and web3 emerging technologies. CryptoCaster is different. We have no billionaire owner or shareholders to consider. Our journalistic efforts are produced to serve the public interest in crypto development and institutional disruptions – not profit motives.

And we avoid the trap that befalls much U.S. and global media – the tendency, born of a desire to please all sides, to engage in false equivalence in the name of neutrality and retail consumer protection. While fairness and transparency dictates everything we do, we know there is a right and a wrong position in the fight against fiat global banking interest and monetary reconstruction precipitated by the emerging crypto ecology.

When we report on issues like the FTX, Binance and Ripple crisis, we’re not afraid to name who or what is uncovered. And as a crypto sentinel, we’re able to provide a fresh, outsider perspective on the global monetary disruption – one so often missing from the insular American and European media bubble. 

Around the world, readers can access the CryptoCaster’s paywall-free journalism because of our unique reader-supported model. That’s because of people like you. Our readers keep us independent, beholden to no outside influence and accessible to everyone – whether they can afford to pay for news and information, or not.

We thankyou for the on-going support our readers have bestowed monetarily. If you have not considered supporting CryptoCaster, if you can, please consider supporting us just once from $1 or more of Bitcoin (satoshi) or Eth, and better yet, support us every month with a little more. Scroll further down this page to obtain CryptoCaster’s wallet addresses.

Thank you.

Kristin Steinbeck
Editor, CryptoCaster



Please Read Essential Disclaimer Information Here.
© 2022-2023 Crypto Caster provides information. CryptoCaster.world does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.


Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
MATIC – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt


CRYPTOCASTER HEATMAP


You may also like