MultiChain CEO and the Team Arrested
According to the news in the last week, MultiChain CEO Zhaojun and his team were arrested in Shanghai. $MULTI coin plunged ~60% as investors withdrew their holdings after the news of the arrests.
Large investors such as HashKeyGroup and small investors have transferred their withdrawn assets to the GATEIO exchange. Some organizations have transferred MULTI assets to the Huobi exchange for better pricing.
Pool Liquidity Problems
A liquidity pool on SushiSwap transferred $5M worth of MULTI coins to the pool to prevent the $MULTI coin from falling. However, they still did not succeed. The current $MULTI liquidity pool on SushiSwap is worth $500K instead of $5.5M.
After the news and transactions, CZ, Binance CEO, shared a tweet about MULTI and multichain team in the form of “STAY SAFU”.
After the news spread, $10M Phantom (FTM) was transferred from the MultiChain address to the GateIO exchange. After this development, the Fantom Foundation removed MULTI/ETH liquidity from its list. This was a development that confirmed the rumors.
In the latest rumors, it is stated that the GateIO team has also been arrested and may be facing bankruptcy on the GateIO exchange, but there has been no official statement yet. After the rumors, GT Token experienced a 10% drop.
Investors state that they have withdrawn their assets from the GateIO exchange, although any problems may occur. GateIO Turkey team made a statement on June 1 that they denied the news of the arrest and bankruptcy. Also below you can see the wallets of the GateIO exchange and their total assets of $ 1.4 billion.