🌐 Chinese CEO of Multichain, Zhaojun He, Resurfaces on Telegram After Unexplained Detention

In May of 2023, he was arrested by Chinese authorities.

Multichain CEO appears on Telegram, leaving investors seeking answers.

Introduction

It seems like Zhaojun He, the co-founder and CEO of cross-chain bridging protocol Multichain, has finally resurfaced on Telegram after his mysterious and continuous detention by Chinese police in 2023. While this news may come as a relief to some, many questions still remain unanswered. Let’s delve deeper into the details and explore the implications of this development.

A Glimpse of Activity

According to user reports on January 16, He’s Telegram profile now shows as “last seen recently,” indicating some user activity. This change is significant because it means that He has accessed the social media platform within the last three days. However, it’s important to note that no new messages have been posted from He’s account. This has led to speculation among users, with some suggesting that it could be the police accessing his Telegram to prevent message auto-deletion, while others believe that He may have regained access to his phone. 🕵️‍♂️

The Multichain Incident

Let’s rewind to May 21, 2023, when Zhaojun He was detained by Chinese police on undisclosed charges. At the time, He had centralized access to Multichain’s assets and servers, making his arrest a cause for concern for users of the protocol. Shockingly, during He’s detention, users’ assets stored on Multichain were mysteriously bridged to unknown addresses without their consent and subsequently withdrawn. The implications of this incident were far-reaching and had a significant impact on crypto investors. 🤯

Insights from Andre Cronje

In a recent message, Andre Cronje, the co-founder of the Fantom protocol, shed some light on He’s whereabouts and the events surrounding the Multichain incident. Cronje confirmed earlier rumors, stating that local police in China, as part of a large scam investigation, traced stolen funds to Multichain. This revealed a crucial detail: the stolen funds were “held” by Multichain, leading to the arrest of most node operators who were forced to surrender their access and keys. With this access, the authorities seized the assets and are currently holding them as part of an ongoing investigation. It’s important to understand this nuance as it clarifies Multichain’s involvement in the incident. 😮

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Legal Challenges and Collaborative Efforts

Fantom, one of the largest users and victims of the Multichain incident, is actively working to retrieve the misappropriated assets. The Fantom team has engaged law firms in Singapore, where Multichain is incorporated, to pursue legal recourse. However, their efforts in mainland China have hit a roadblock due to their inability to act on behalf of all impacted users. Unfortunately, legal and regulatory processes, especially those tied to criminal investigations, tend to take years to reach a resolution. This is undoubtedly a frustrating situation for everyone involved. 🤔

The Chinese Crackdown on Web3

Since the beginning of 2023, Chinese authorities have been cracking down harshly on Web3 and blockchain firms operating within mainland China. Cryptocurrencies are officially illegal in China, and founders of Web3 projects face severe penalties, including asset seizure and presumption of guilt until proven otherwise. While this crackdown has undoubtedly reduced money laundering operations and crypto scams, it has also affected foreign investors who unknowingly used Chinese blockchain protocols, causing unintended collateral damage. It’s a complicated situation with both positive and negative consequences. ⚖️

Q&A: Addressing Additional Concerns

Q: What are the implications of He’s return to Telegram? A: He’s presence on Telegram indicates some form of activity but does not provide any concrete information about his status or the ongoing investigation. There are still many unanswered questions and uncertainties surrounding this development.

Q: Can Fantom successfully retrieve the misappropriated assets? A: Fantom is actively pursuing legal avenues to recover the assets. Their collaboration with law firms in Singapore is a step in the right direction. However, the complexities of the legal process and the involvement of Chinese authorities make the outcome uncertain.

Q: How does the Chinese crackdown on Web3 affect the blockchain industry? A: The crackdown has had mixed effects. While it has curbed illegal activities and scams, it has also created a difficult operating environment for legitimate blockchain projects. Foreign investors using Chinese protocols face potential risks due to the legal and regulatory landscape.

Future Outlook and Conclusion

The Multichain incident and Zhaojun He’s detention have had profound implications for the blockchain industry and its participants. As the legal processes unfold, it’s crucial to monitor the developments closely. The ongoing Chinese crackdown on Web3 projects adds another layer of complexity to the situation. However, it also presents an opportunity for the industry to evolve and find innovative solutions to adapt to changing regulatory landscapes. Despite the challenges, the blockchain revolution continues, and it is up to the industry and its participants to navigate these turbulent waters and emerge stronger. 💪

Reference List

• Fantom
• Multichain saga screws users, Binance fires 1,000 staff
• Bitzlato Suspends Bitcoin Withdrawals Indefinitely, Founder Pleads Guilty to Unlicensed Money Transmitting
• EU Banking Authority Extends Anti-Money Laundering Guidance for Crypto
• Binance Reports 30% Surge in Users, Facilitates 18 Traders in 2023; Emphasizes Compliance Strengthening

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Hey readers! What are your thoughts on the Multichain incident and Zhaojun He’s reappearance on Telegram? Let us know in the comments below! And if you found this article insightful and entertaining, don’t forget to share it with your friends on social media. Until next time! 👋

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