After a months-long saga involving "stuck" transactions, Multichain announcing they couldn't get in contact with their CEO, rumors that the whole team was arrested, and several suspicious transactions of more than $100 million each, Multichain has finally announced that their CEO — known only as Zhaojun — was arrested on May 21. According to the project, all of his devices, hardware wallets, and mnemonic phrases were taken by Chinese police during the arrest. "Since the inception of the project, all operational funds and investments from investors have been under Zhaojun's control. This also means that all the team's funds and access to the servers are with Zhaojun and the police," they wrote.

The Multichain project claimed in a lengthy Twitter thread that the team attempted to keep the project running by using stored credentials on Zhaojun's home computer, thanks to access provided by his sister. However, they say that the July 6–7 movement of $130 million out of the project was an "abnormal" transfer by an unknown party. They claim that the July 9–10 transfer of around $107 million was his sister attempting to preserve assets by moving them into wallets she controlled. According to the team, his sister also was arrested on July 13, and "the status of the assets she has preserved is uncertain".

"Due to the lack of alternative sources of information and corresponding operational funds, the team is forced to cease operations," they wrote. They also claimed that they don't have control over the domain pointing to the frontend of the project, and so are unable to take the project offline, and resorted to pleading with GoDaddy for help in doing so.

"Honestly he deserves jail for this level of cryptography incompetence alone," wrote crypto personality 0xfoobar on Twitter.

• Tweet thread by Multichain
• Tweet by 0xfoobar