Binance Suspends Multichain Deposits As Rumors Swirl

Binance has temporarily suspended token deposits for Multichain’s Bridge Token network after five days of stuck transactions on multiple cross-chain pathways.


No word from MultiChain on funds release and clearing pathway

The crypto exchange suspended deposits after the MultiChain management team did not address the stuck transactions. Crypto Twitter speculated that the project may be in a state of disarray after its management was allegedly arrested in China.

DJ Qian, co-founder of MultiChain Insisted The team’s CEO was “not yet available” amid growing frustration on the project’s Telegram group.

A user, Emeka Achodor, claimed that his money was stuck for five days on Thursday. Several other users complained of low ETH liquidity across all pools on MultiChain.

MultiChain allows crypto asset swaps on bridges via pegged tokens or liquidity pools. The router determines the best swap method.

Users can swap tokens across 70 chains, including Phantom, Kava, and Harmony, using a network of cross-chain bridges or liquidity pools. They can exchange multichain tokens such as USDC only if there is sufficient liquidity on both chains.

Neu13 pointed out that the funds in the smart contract prove that the team did not execute the rig pull.

Locked Funds Suggest Multichain Can't Rug-Pull Amid Binance Suspension
Neuro13 suggested that the team may not have stolen funds. Source: Telegram

The Multichain team has yet to respond as of press time.

Binance CEO Suggests TV Broadcast Could Start a Bull Run

Last year, hackers took advantage of a Multichain Deposit bug to steal $1.4 million. Cross-chain bridges, which lock tokens in a smart contract on one source chain to mint on another network, have resulted in hundreds of millions of dollars of hacks.

binance Investment $350,000 in MultiChain through its accelerator program in 2020.

Yesterday, Changpeng Zhao, CEO of crypto exchange, Said China Central Television aired a broadcast mentioning crypto despite a nationwide mining and trading ban.

Zhao noted that the previous coverage was before the bull market. Gemini co-founder Cameron Winklevoss recently predicted that Asia would trigger the next bull market.

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