Multichain CEO Missing, Stablecoin Issuers Reportedly Detained in China

Chaos has struck self-styled Web3 router Multichain and yuan-backed stablecoin issuer Trust Reserve across a matter of days

article-image

WindAwake/Shutterstock modified by Blockworks

share

Crypto startup Multichain has found itself in a web of troubles about a week after rumors circulated that some team members were arrested by Chinese authorities.

The team tweeted an update on Wednesday, which said they had encountered a flurry of unforeseen challenges in the past 48 hours.

In a tweet thread, Multichain (formerly Anyswap) said it was unable to establish communication with its CEO, who goes by Zhaojun, and can no longer access servers necessary for maintenance.

Multichain styles itself as a Web3 “router,” a bridging protocol for swapping tokens across different networks. 

Loading Tweet..

However, the latest update revealed problems with a network of nodes within Multichain, named Router5. This has impacted cross-chain services provided to a number of little-known blockchains such as Public Mint, Ekta and ONUS.

“This problem is beyond the team’s current permissions and ability. In order to protect the interests of our users, we have decided to suspend the corresponding cross-chain service for the affected chain on the UI,” the team said, and added that the same issue occurred on Router2 last week.

DeFi apps running on Multichain had $1.46 billion total value locked as of press time, according to DeFiLlama. Blockworks has reached out to Multichain to confirm whether those funds are still accessible to users, as well as whether Zhaojun is the sole team member with access to the private keys controlling the protocol.

In any case, Multichain’s native token, MULTI, has fallen about 50% since word of its troubles first broke on social media on May 24.

While Crunchbase indicates Mulitchain is headquartered in Singapore, some have shared concern that key Multichain staff were arrested in China, although those reports have not been confirmed.

Binance said on May 25 it would temporarily suspend deposits for certain tokens related to Multichain’s bridge while waiting for more information from the team.

Separately, Chinese crypto outlet PANews reported this week that staff members behind yuan-backed stablecoin issuer Trust Reserve (formerly CNHC Group) had been detained by local authorities.

The firm closed a $10 million funding round with participation from Circle Ventures, KuCoin Ventures and IDG Group in March.

Trust Reserve’s offices were now said to be empty, with a sign that reads “Judicial Seizure, No Vandalism,” per the outlet. It’s unclear whether the two situations are connected, or whether the reported police attention came as a result of its work with cryptocurrency.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Featured.png

Research

Helium stands at a pivotal moment in its evolution as a decentralized wireless network, balancing rapid growth, economic restructuring, and global expansion. With accelerated growth in domestic DAUs and Hotspots supporting its network, Helium is leveraging strategic partnerships and innovative proposals to scale internationally. The recent implementation of HIP 138, “Return to HNT,” has unified its token economy under HNT, simplifying participation and strengthening liquidity, while HIP 139’s phase-out of CBRS refocuses efforts on scalable Wi-Fi offload. Meanwhile, governance shifts under HIP 141 raise questions about centralization as Nova Labs consolidates control over the roadmap.

article-image

Q1 may have been “frustrating,” but things are looking brighter for Q2

article-image

Tokens worth 20% of the current supply of the TRUMP memecoin launched by the president are set to be unlocked tomorrow

article-image

A crypto-industry lawsuit is “moot” now that Joint Resolution 25 has been signed into law

article-image

Fed Chair Powell assured markets that the labor market is in “good place,” dependent on price stability

article-image

As uncertainty reigns, the Philly Fed manufacturing index fell to a multi-year low, but layoffs have slowed

article-image

Base launched two tokens as part of its ethos that everything can be tokenized, but the move sent Crypto Twitter reeling