In the high-stakes, high-speed world of cryptocurrency, a sudden twist can send shockwaves across the globe. The recent arrest of Zhaojun, the CEO of Multichain, is a perfect example of such a twist. Multichain, a project that serves as a bridge linking diverse blockchains, was forced to hit the brakes and announce its shutdown due to insufficient operational funds.
Multichain, known for its unique ability to allow users to swap digital tokens across various blockchains, was plunged into chaos with Zhaojun's sudden disappearance in late May. The crypto community was abuzz, with speculation about Zhaojun's whereabouts reaching fever pitch.
But the plot thickened. Multichain dropped a bombshell, announcing an unexpected outflow of assets to the tune of more than $126 million. In a twist of fate, Zhaojun's sister, in an attempt to move the remaining user assets to wallets she controlled, found herself in the crosshairs and was also taken into custody.
Adding another layer to the mystery, Beosin, a digital-asset security specialist, reported additional outflows of $103 million from Multichain on July 11.
The authorities didn't just stop at arresting Zhaojun and his sister. They also seized Zhaojun's computers, phones, hardware wallets, and mnemonic phrases. The reason for Zhaojun's arrest remains shrouded in mystery, adding to the intrigue.
From the get-go, Zhaojun was the one pulling the strings, controlling all operational funds and investments from investors. Now, with him behind bars, all the team's funds and access to the servers are in the hands of Zhaojun and the police.
The fallout from Zhaojun's arrest has been a nightmare for Multichain. The total value of assets locked on Multichain has taken a nosedive, plummeting from $1.2 billion on July 11 to a mere $137 million as of Friday.