Multichain, the cross-chain router protocol, is facing issues and delays in fund transfers after a recent upgrade, as reported by its users. There are also unconfirmed rumors about the arrest of the Multichain team.
MULTI Token Plummets 24% in 24 Hours
Several Multichain users have flagged complaints about their funds being stuck in the protocol for up to 72 hours. The team has reported a delay in the backend upgrade which is taking longer than usual to complete.
As per the update issued on May 23, Multichain has temporarily suspended some routes like Kava, zkSync, Polygon zkEVM, while upgrading its back-end node. The affected transactions will complete once the upgrade is finished, and the operations will be back to normal.
Meanwhile, the discussion on Multichain’s Telegram channel suggests that only one router is yet to complete the upgrade, while others are working fine. According to the administrators, the upgrade of the final router is underway, after which the operations will be back to normal.
The token MULTI of Multichain has fallen by over 24% in the past 24 hours, as panic selling by the holders may be the cause for the dip. According to Coingecko, the token’s value dropped from $7.09 to $5.39.
Unconfirmed Reports of Multichain Team’s Arrest in China
Several investors, including Hashkey and an address with the ENS name hwg.eth, have reportedly been selling their MULTI tokens, while Fantom Foundation removed around 450,000 MULTI tokens worth $2.4 million from liquidity on SushiSwap.
Despite the rumors of the arrest of the Multichain project team by the Chinese authorities, no confirmation or denial has been issued by the Multichain team. The reports suggest that over $1 billion in contract funds is under control, but the situation is still unfolding.