Multichain users have reportedly been experiencing delays in receiving their funds following a recent upgrade of the cross-chain router protocol. There have also been rumors circulating about the arrest of the Multichain team, although these have not been confirmed.
According to complaints from several Multichain users, their funds have been stuck in the protocol for up to 72 hours. The team has suggested that part of the problem is due to a backend upgrade, which is taking longer than anticipated.
On May 23, Multichain provided an update on the situation, stating that the upgrade of the back-end node was taking longer than expected. The team further explained that most of the routes were working as usual, but some routes, including Kava, zkSync, and Polygon zkEVM, were temporarily suspended. The team assured users that all affected transactions would arrive once the upgrade was complete.
Further discussions on Multichain’s Telegram channel on May 24 revealed that all but one router was undergoing an upgrade. One admin in the group stated that only one router was left in the upgrade process, with the other six routers working fine. The team was reportedly working on the final router, and operations would be back to normal once it was finished.
Token Value Drops
Multichain’s token, MULTI, has fallen over 24% in the last 24 hours, dropping from $7.09 to $5.39, according to Coingecko. This decline in value may be a result of panic selling from holders.
Lookonchain has also reported that some investors have been selling their Multichain tokens. On May 24, one address deposited 494,200 MULTI (valued at $2.75 million) to the crypto exchange Gate.io, while the digital asset financial services group Hashkey transferred $247,000 worth of MULTI to the same crypto exchange.
Additionally, an address with the ENS name hwg.eth sold over 36,000 MULTI tokens to receive $200,000 on May 23. Notably, the Fantom Foundation recently removed approximately 450,000 MULTI (worth $2.4 million) tokens from liquidity on SushiSwap.
Rumors of Arrests and Contract Funds
Alongside reports of delayed transactions and a decline in token value, rumors have also circulated about the arrest of the Multichain project team by Chinese authorities. There have been claims that over $1 billion in contract funds are “under control.”
However, Multichain has not confirmed nor denied these rumors, and the situation remains a developing story.