Binance Suspends Deposits Amid Multichain CEO’s Disappearance: Implications & Safety Concerns

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In a recent development, the world’s largest crypto exchange Binance has temporarily suspended deposits for several bridged network tokens, as it awaits clarification from the Multichain team. This situation has emerged amidst reports of Multichain co-founder and CEO Zhao Jun being missing and possibly under investigation by the police. Fusion Foundation founder and co-founder Qian Dejun has also confirmed his inability to reach Zhao Jun.

Binance announced the suspension of deposits for bridged tokens related to Multichain through a tweet on May 25. The exchange plans to reopen deposits only after receiving clarity from the Multichain team. Consequently, Binance has suspended deposits for assets such as POLS-BSC, ACH-BSC, BIFI-FTM, SUPER-BSC, AVA-ETH, SPELL-AVAXC, ALPACA-FTM, FTM-ETH, FARM-BSC, and DEXE-BSC. However, deposits for these assets on other networks remain open.

The Multichain team previously confirmed that most of its cross-chain routes are functioning normally, but some are unavailable due to “force majeure.” The timeframe for service restoration remains unknown. Several users reported their funds being stuck in the bridge for many hours, and the team has agreed to compensate these users for their losses. Major stakeholders affected by the unavailability of Multichain cross-chain routes are Fantom Foundation, followed by BSC and Optimism.

Qian Dejun, former co-founder of Multichain and Fusion Foundation founder, expressed his views on the situation via Twitter. He mentioned his concerns about user asset safety and individual safety while hoping that nothing too serious is happening with Multichain.

The ongoing situation has impacted Multichain’s native token MULTI, which experienced a 40% fall in the last three days. The price currently trades at $4.90, representing a 25% drop in the past 24 hours.

As this situation unfolds, the market awaits clarification from the Multichain team, and investors must exercise caution when dealing with cryptocurrencies. The safety of user assets and individuals involved is of the utmost importance, and any potential consequences must be considered before making investments. This incident serves as a reminder of the importance of proper due diligence in the ever-evolving world of cryptocurrencies and blockchain technology.

Source: Coingape

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