Multichain’s Zhao Jun He has allegedly reappeared on Telegram after a year, sparking curiosity amid ongoing legal and crypto community turmoil.
Zhao Jun He, co-founder and CEO of cross-chain bridge protocol Multichain, has recently shown signs of activity on Telegram. The development comes after a long period of inactivity following his detention by Chinese authorities in May 2023.
As of January 16, 2024, Zhao Jun's Telegram profile indicated that he was "last seen recently," having previously been "last seen a long time ago." This subtle update suggests some form of recent contact with the account, but it is unclear whether Zhao Jun himself has visited the account.
The Multichain Incident and Its Aftermath
Last year, Zhao Jun’s arrest caused uproar in the cryptocurrency community, particularly because he maintained centralized control over Multichain’s assets and servers. Following his arrest, there were reports of unauthorized transfers and withdrawals from user accounts on Multichain.
This was revealed by Andre Cronje, co-founder of Fantom Protocol and a victim of the Multichain incident. According to Cronje, Chinese police are investigating a massive scam and tracking stolen funds that were bridged through Multichain. As part of the investigation, the authorities arrested several node operators and seized assets.
Legal efforts and regulatory challenges
Fantom, which was greatly affected by the incident, is actively working with a Singapore law firm to recover the stolen assets. However, efforts in mainland China are facing obstacles, and it is difficult for Fantom to represent all affected users in legal proceedings. Cronje pointed out that in cases involving criminal investigations, regulatory and legal resolutions are usually slow.
Since last year, Chinese policy has taken a stricter approach towards Web3 and blockchain companies, focusing on operations within mainland China, where cryptocurrencies remain illegal. The crackdown has been effective in reducing instances of money laundering and cryptocurrency scams. However, it has also inadvertently affected foreign investors and users of Chinese blockchain protocols who are not involved in criminal activity. #Multichain #法律监管