The completion of the Multichain Blockchain backend upgrade has experienced a delay, causing several user transitions to stuck. At the same time, it is speculated that the team behind Multilink has also been arrested in China, but that remains unconfirmed. As of now. a high number of users have reported their funds to be stuck on Multichain for as long as 72 hours. However, Multichain initially clarified that the upgrade of the backend node is taking longer than expected.
Similarly, the firm mentioned how most of its routes are working as usual, whereas some routes like Kava, zkSync, and Polygon zkEVM have been temporarily suspended. However, all the affected transactions will arrive as soon as the upgrade is complete. As a result of the mishap, Lookonchain, a blockchain analytics firm, reported at least $3 million worth of MULTI outflows linked to smart money accounts.
While most of the cross-chain routes of Multichain protocol are functioning well, some of the cross-chain routes are unavailable due to force majeure, and the time for service to resume is unknown. After service is restored, pending transactions will be credited automatically.…
— Multichain (Previously Anyswap) (@MultichainOrg) May 24, 2023
As per the recent update on May 24, only a single router was going through an upgrade. An admin mentioned how six routers instead of one are working fine now, whereas another mentioned that the team was diligently working on the final router and how operations would return to normal as soon as that’s done.
With the transaction delays, accompanied by the rumors of the Multichain team being arrested, the trading price of MULTI has suffered considerably. At the time of writing, MULTI has plunged by a whopping 27.33% in the previous 24 hours, pushing the trading price down to $5.11 while the market cap of the token currently stands at $74 million.
The Multichain Team Gets Arrested
Despite delayed transactions and increased outflows, a rumor highlights how the Multichain project team has been arrested with more than $1 billion in contract funds. However, Multichain has not shared anything to confirm such an event, but it would likely do so as the story continues to unfold.
Similarly, Lookonchain also suggested that holders have been rapidly selling their MULTI tokens. An address deposited almost 494,200 MULTI tokens to Gate.io on May 24. At the same time, Hashkey also transferred MULTI tokens worth $247,000 to the same crypto exchange not too long after.
An address with the ENS name hwg.eth was responsible for selling more than 36,000 MULTI tokens. Furthermore, the Fantom Foundation also removed more than 450,000 MULTI tokens from its liquidity pool on SushiSwap. This increased sell-off will hurt the price of the token and the project in the long run.
