Binance Temporarily Halts Deposits for Bridging Tokens Linked to Multichain

• As per number of reports, the co-founder and CEO of Multichain, has disappeared.
• The Fantom Foundation withdrew MULTI tokens worth $2.4 million.

As answers from the Multichain team are still needed, the biggest cryptocurrency exchange in the world, Binance, said on Thursday that it will temporarily ban deposits for certain bridging network tokens.

Meanwhile, a number of reports have surfaced suggesting that Zhao Jun, co-founder, and CEO of Multichain, has disappeared and is the subject of a police investigation. Qian Dejun, who helped form the Fusion Foundation together with Zhao Jun, has verified that he has been unable to contact Zhao Jun.

On May 25, the cryptocurrency exchange Binance tweeted that it will temporarily halt deposits of bridging tokens associated with Multichain. Only after receiving clarification from the Multichain team will the exchange consider reopening deposits.

POLS-BSC, ACH-BSC, BIFI-FTM, SUPER-BSC, AVA-ETH, SPELL-AVAXC, ALPACA-FTM, FTM-ETH, FARM-BSC, and DEXE-BSC deposits have been temporarily halted on Binance. The wallets holding these assets on other networks are still accessible.

Panic Withdrawal Underway

Earlier, Multichain stated that the majority of the Multichain protocol’s cross-chain channels are operational, while some are now down due to “force majeure” and the exact time till they come back up is unclear.

On the cryptocurrency exchange SushiSwap, the Fantom Foundation withdrew MULTI tokens worth $2.4 million. HashKey Group sent $250,000 to Gate.io, while Justin Sun, founder of Tron, withdrew $470,000 USDD in stablecoin.

First hit by the lack of Multichain cross-chain channels is Fantom Foundation, then BSC, and finally Optimism. The value of MULTI, Multichain’s native token, has dropped by 40% over the last three days as events have unfolded. The price has dropped 14% in the last day, trading at $4.41 now.

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