• Binance has temporarily halted deposits for tokens associated with Multichain following reports of its CEO’s disappearance and the withdrawal of MULTI tokens worth $2.4 million.
• HashKey Group sent $250,000 to Gate.io, while Justin Sun withdrew $470,000 USDD in stablecoin, resulting in a 40% drop in the value of MULTI over the past three days.
• Binance will consider reopening deposits after receiving clarification from the Multichain team.
Binance Temporarily Halts Deposits for Bridging Tokens Linked to Multichain
As per number of reports, the co-founder and CEO of Multichain, has disappeared. The Fantom Foundation withdrew MULTI tokens worth $2.4 million.
Binance’s Response
As answers from the Multichain team are still needed, the biggest cryptocurrency exchange in the world, Binance, said on Thursday that it will temporarily ban deposits for certain bridging network tokens.
Panic Withdrawal Underway
On May 25, the cryptocurrency exchange Binance tweeted that it will temporarily halt deposits of bridging tokens associated with Multichain. Only after receiving clarification from the Multichain team will the exchange consider reopening deposits.
Earlier, Multichain stated that majority of its cross-chain channels were operational but some were down due to “force majeure” and exact time till they come back up is unclear.
On SushiSwap crypto exchange platform Fantom Foundation withdrew MULTI tokens worth $2.4 million while HashKey Group sent $250,000 to Gate.io & Justin Sun withdrawn $470,000 USDD in stablecoin.
The value of MULTI token (native token) has declined by 40% over last 3 days as events unfolded & 14% drop in last day trading at 4.41$ now.
Deposits Affected
< p >POLS-BSC , ACH – BSC , BIFI – FTM , SUPER – BSC , AVA – ETH , SPELL – AVAXC , ALPACA – FTM , FTM – ETH , FARM – BSC & DEXE – BSC deposits have been temporarily halted on Binance . The wallets holding these assets on other networks are still accessible . < h2 >Conclusion
< p >The lack of clarity about Zhao Jun ‚ s disappearance and lack of response from Multichain team has caused panic among investors leading them to withdrawal their funds causing further decline in price . It remains unclear when deposit feature can be resumed again until clarification is received from multichian team .