Multichain Appears Abnormal, MULTI Price Drops Over 20%

Key Points:

• The social network Twitter stirred up information that the Multichain team in China had been arrested by the authorities.
• Many on-chain signs indicate suspicious movements related to the MULTI token.
• The MULTI token has plunged more than 20% in a 24-hour range.

On May 24, the social network Twitter spread the word that the Multichain crew had been detained by Chinese authorities. At the same time, several on-chain indicators point to questionable MULTI token activity.

The Multichain (MULTI) token’s price has dropped over 20% from $7.1 to $5.23 in response to user concerns over blocked transactions on the cross-chain bridge technology.

Customers have been reporting frozen transactions since May 21. According to Multichain, the troubles are the result of an ongoing upgrade and delayed upgrades to nodes for cross-chain routers.

According to a Chinese source, the Multichain crew was seized by Chinese authorities, and the Multichain team quickly transferred the token to the Gate.io exchange.

听到消息 Multichain 据说是被抓了，冷钱包被控制，大概 1.5B 的资金

TG 把维权的都踢了，团队打币进所砸盘

看了链上数据，其中大部分是 FTM 链上的资金，同时跨链桥交易量从4M 降到了 7K..https://t.co/n1UCFYNFEk

种种迹象都佐证出问题了，有 FTM 链资产的速度跑，不立围墙之下，避免无妄之灾 pic.twitter.com/MhRLrEskC7

— 愉悦 yuyue.lens 🦇🔊🐻⛓⚛️🚢 (@yuyue_chris) May 24, 2023

“The upgrade of the back-end node is taking longer than expected. Most of the routes are working as usual, as some routes (Kava, zkSync, Polygon zkEVM) are suspended temporarily for now. All the affected transactions will arrive once the upgrade is complete,” the Multichain team said on May 23.

According to another Wu Blockchain source, Multichain’s cross-chain money transfer assistance service has also abruptly ceased. Nevertheless, the attached justification is for back-end changes.

Some users reported that there is an abnormal delay in the arrival of Multichain's current cross-chain funds. The Multichain official responded in discord that the upgrade of the backend nodes took longer than expected. Most routes are working as usual, as some routes (Kava,…

— Wu Blockchain (@WuBlockchain) May 24, 2023

Multichain’s team explained on Telegram:

“Only one router left in the upgrade progress. Other 6 routers work fine now. We are working on the last router. Everything will be back to normal once it’s finished.”

The team also said that all monies are secure and that transactions would be completed once the modifications are completed.

Lookonchain, a data surveillance platform, has discovered efforts to transfer a huge number of MULTI tokens to the Gate.io exchange. The Fantom Foundation is another name with an unusual move. Accordingly, the Fantom Foundation wallet removed $2.4 million worth of MULTI tokens from the SushiSwap liquidity pool.

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

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Harold

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