Multi has lost around half its value since Wednesday. The crash follows major network delays and rumors that members of the Multichain team have been arrested.
To mitigate risks, major players across the crypto space are pulling their support for the Multichain protocol.
Chinese Arrest Rumors Hit Multichain
Rumors that members of Multichain’s management team had been arrested first arose on Wednesday. At the same time, reports started circulating of assets being stuck for days on the cross-chain bridging protocol.
Binance, which is an investor in the project, pointed to tweets that implied Chinese authorities had made the arrests.
Meanwhile, on-chain data shows that 494,200 MULTI tokens were transferred from the Multichain management team’s address.
While crypto Twitter was gripped with speculation that Multichain could be about to pull the rug, the company tweeted that a “force majeure” had affected some of its…
