Chinese police have reportedly arrested the CEO of the Chinese cross-chain protocol Multichain, identified as “Zhaojun He,” as part of a money laundering investigation. The arrest took place in May, but details about the charges have not been disclosed. Multichain’s core team, operating in Shanghai, was also allegedly arrested. Questions have been raised about the CEO’s alleged fake ID used to register Multichain’s operations. The protocol’s multi-party computation servers and private keys were under the exclusive control of Zhaojun, which were handed over to the police, leading to the shutdown of the protocol. Users’ assets worth $1.5 billion remain inaccessible. Victims have formed a group seeking answers and have reached out to Chinese embassies and police in their home countries. The Fantom Foundation, a major user of the Multichain bridge, has hired attorneys in China to assist in the recovery process. The investigation is ongoing, and users are still trying to recover their funds.
