MEXCMultichain CEO’s Telegram Return Fuels Speculation Months After Arrest
Zhaojun He, the co-founder and CEO of Multichain, a cross-chain bridging protocol, has recently shown signs of activity on Telegram. This development comes after a prolonged period of inactivity following his detention by Chinese authorities in May 2023.
As of January 16, 2024, Zhaojun’s Telegram profile indicated he was “last seen recently,” a change from the previous status of “last seen a long time ago.” This subtle update suggests some form of recent engagement with the account, though it remains unclear whether Zhaojun himself accessed it.
Multichain Incident and Its Aftermath
Zhaojun’s detention last year sent shockwaves through the crypto community, particularly as he maintained centralized control over Multichain’s assets and servers. Following his arrest, there were reports of unauthorized transfers and withdrawals from user accounts on Multichain.
Andre Cronje, the co-founder of Fantom protocol and a victim of the Multichain incident, shed light on the situation. According to Cronje, the Chinese police were investigating a large-scale scam and tracked stolen funds that had been bridged via Multichain. This led to the arrest of several node operators and the seizure of assets by the authorities as part of the investigation.
Legal Efforts and Regulatory Challenges
Fantom, significantly impacted by the incident, is actively working with law firms in Singapore to recover the misappropriated assets. However, efforts in Mainland China are facing hurdles, with Fantom struggling to represent all affected users in legal proceedings. Cronje notes the typically slow pace of regulatory and legal resolutions in cases involving criminal investigations.
The Chinese government’s stringent approach to Web3 and blockchain firms has intensified since last year, focusing on operations within Mainland China, where cryptocurrencies remain illegal. This crackdown has effectively reduced instances of money laundering and crypto scams. However, it has also inadvertently affected foreign investors and users of Chinese blockchain protocols who were not involved in criminal activities.
Read Also: WEMADE Adds ‘Crystals of Naramunz’ to Blockchain Gaming Lineup
- Will Crypto Market Rebound or Crash Ahead as 10X Research Tips Shorting Ethereum?
- Sam Bankman-Fried Says FTX Was “Never Bankrupt,” Crypto Community Reacts
- XRP ETF Coming This November 13 As Canary Capital Submits Updated S-1 By Removing Roadblocks
- Canary XRP ETF Filing Removes SEC Delay Clause, Targets November Launch
- CFTC, SEC Launch ‘New Era of Collaboration’ to Clarify Crypto Rules, End Regulation by Enforcement
- Sei Price Forecast: Will Robinhood Listing Spark a Rally?
- XRP Price Outlook as ETF Nears Possible November 13 Launch
- Cardano Price Risks 20% Crash Amid Death Cross and Falling ADA ETF Odds
- Bitcoin Price Forecast as Trump Cuts Tariffs After US-China Trade Deal
- Analyst Foresees a Parabolic Rally for Pepe Coin Price as Whale Accumulation Intensifies
- Fidelity Amends S-1 for Solana ETF: Is SOL Price Set to Rally?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
