Rumor: Multichain Founder Arrested by Police In Shanghai For Investigation

Key Points:

  • According to sources of Wu Blockchain, the founder of the noisy Multichain of the past days has been arrested in Shanghai. The tweet has now been deleted.
  • Earlier, there were also rumors that the police arrested the project development team and took control of the network’s wallets.
  • Cross-chain FUDs started when there was a delay in user trading activity on May 24.
According to a source from Wu Blockchain, the Multichain founder has been arrested by Chinese police in Shanghai for investigation. But now the tweet has been deleted.
Multichain Founder Arrested by Police In Shanghai For Investigation

The incident started when users noticed an unusual delay in receiving cross-chain funds on the Multichain on May 24. Later, the cross-chain announced that, despite most of the cross-chain routes of the transaction. All modes are working, but due to force majeure, some cross-linking routes have gone offline, and service recovery time is unclear.

A day later, rumors surfaced in the Chinese crypto community that the police had arrested the Multichain network development team. The Chinese police can also control the network’s hardware/cold wallets. Based on speculative claims, the wallet involves around $1.5 billion to $1.6 billion in funds.

Multichain Founder Arrested by Police In Shanghai For Investigation

However, despite the speculations, the project’s co-founder noted in a Telegram community that the team is in good shape. Co-founder Alfred Xu also pointed out that business will continue normally, and the troubled route will be restored automatically.

A blockchain investigator named BoringSleuth examined the implications of the rumors of arresting Multichain team members. The detective mentioned that the arrest was massive, citing that if the arrest were valid, then one of the most significant criminal organizations in the crypto space would have been arrested. Team members are connected to over 10 enumerator-based carpet pulls.

The incident is still just speculation without verifiable evidence, and it is still ongoing so follow us to get the latest information.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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