Multichain CEO Disappears With User Assets – What Happens Next?

Key Points:

• Multichain CEO Zhao Jun was taken away by Chinese police, leaving the project in crisis.
• Multichain team maintaining the project to best of their abilities with limited resources.
• User assets were transferred abnormally, and the police also took away the sister of Zhao Jun.

Multichain released a report: On May 21, 2023, CEO Zhao Jun was taken away by the Chinese police and has been out of contact since then. After discovering the abnormality, Zhao Jun’s sister transferred the remaining user assets in the pool on July 9. On July 13, the police took Zhao Jun’s sister away and lost contact.

Multichain has recently faced a significant crisis. On May 21, 2023, CEO Zhao Jun was taken away by the Chinese police and has been out of contact with the global Multichain team ever since. After discovering the abnormality, Zhao Jun’s sister transferred the remaining user assets to the pool on July 9. On July 13, the police took Zhao Jun’s sister away, and she has been out of contact.

The Multichain team has been working to maintain the project to the best of their abilities with limited resources. Despite the lack of information about the case, the team has chosen to cooperate as much as possible with the demands of Zhaojun’s family and adhere to the requirements of local laws and regulations, refraining from disclosing unauthorized information about the case to the public. In a responsible approach toward the community, the team released the news about Zhaojun’s disappearance on May 30 and informed the community about the current technical issues.

The Multichain protocol is still operating as designed, and the team is making every effort to sustain its operation and resolve user issues as much as possible. However, on July 7, user assets locked on the MPC addresses were transferred to unknown addresses abnormally. According to Zhaojun’s sister, login information from an IP address in Kunming was found on the cloud server platform, along with a series of operations transferring funds from the MPC addresses. On July 9, Zhaojun’s sister moved the remaining user assets to the router pool and notified the team and several project parties of this asset preservation action. The funds were transferred to EOA addresses controlled by Zhaojun’s sister.

On July 13, the police took Zhaojun’s sister into custody, and now she is out of contact. The status of the assets she has preserved is uncertain, so the team believes informing the community about all the known circumstances is necessary. Due to the lack of alternative sources of information and corresponding operational funds, the team is forced to cease operations. The team will update the community accordingly if further notifications and developments occur.

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