Protocol for cross-chain routers Multichain has claimed that it has been “forced to cease operations” due to a shortage of operational capital.
The disclosure comes in the wake of a research from blockchain analytics firm Chainalysis, which stated that withdrawals appear to be a “rug pull” by insiders.
Multichain’s official Twitter account declared on July 14 that it will be ceasing operations.
According to the team, a “lack of alternative sources of information and corresponding operational funds” has caused them to halt their business operations.
The team also stated in the tweet that the worldwide Multichain team has had no contact with their CEO, known as “Zhaojun,” since he was detained by Chinese police.
According to the team, they have contacted the CEO’s family and discovered that Zhaojun’s computers, phones, and other electronic devices had been seized by authorities.
