On July 14, developers of the $1.5-billion Chinese cross-chain protocol Multichain confirmed users’ worst fears. The protocol’s CEO, identified only as “Zhaojun He,” was arrested by Chinese authorities in Kunming on May 21 after months of repeated denials on official communication channels. Also allegedly arrested was Multichain’s core team, which was operating in Shanghai.
It was never disclosed why Zhaojun had been arrested or what the charges were. However, evidence suggests that Multichain funds may have been seized as part of an anti-money laundering operation in the context of a greater crackdown on crypto by Chinese authorities. In addition, an alleged fake ID used by the CEO to register Multichain’s operations only draws more questions.
Multichain co-founder Alfred Xu assured that the development team was doing “just fine” on May 24 | Source: TelegramA Singaporean business filing for the principal business entity behind Multichain.Source: TelegramMultichain’s user interface gave no warning that it shouldn’t be used. (Aug. 23, 2023)The ID search query revealed that “He Xiaokun,” an individual listed as a Multichain director, is currently 68 years old and lives in a village in Jiangsu.Source: ID SearchZhaojun He as listed in Fusion’s developer team. His biography reads: “More than 10 years of experience in secure Linux R&D. Former technical director of Chinese leading security operating system. Received bachelor of software engineering, Dalian University of Technology.” Source: FusionCoinXP trial participants allegedly being apprehended by police | Source: Liang LiangCrypto exchange BKEX’s last message to users before halting withdrawals.
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