Following the most recent update from the troubled Multichain protocol, Fantom Foundation is taking decisive action. The largest stablecoin issuers, including Circle (USDC), Tether Holdings Ltd. (USDT), and TrueUSD (TUSD), have reportedly been asked by Fantom Foundation to freeze the stablecoins connected to the Multichain bridge, which are the main assets impacted by the company’s most recent exploits.
Multichain’s new revelation
Fantom Foundation responded to the Multichain protocol’s Friday announcement that prominent members of its leadership had been detained by Chinese authorities. The protocol acknowledged that Zhaojun, its chief executive officer, was detained on May 31 and has since vanished.
On July 7, Zhaojun’s sister, who had been crucial in preserving some of the protocol’s assets, was also hauled up by the authorities, and contact was thereafter lost. The remaining Multichain team opted to stop working as a result of these two arrests, which rendered the protocol inoperable and prevented them from having access to operational funding.
The team acknowledged in the lengthy post that they lack the authority to terminate the Domain Account, therefore the Multichain.org platform is still operational. Users were urged not to transmit money to the addresses associated with the protocol.
Fantom and way forward
Fantom Foundation expressed disappointment with the information provided by the Multichain protocol, and after the firm’s request to lock a total of $62 million in the top three impacted stablecoins, the organisation claimed it can confirm this.
Fantom promises to locate more assets that may have been impacted by the procedure and lock them up as well. Prior to this, Fantom made known its intentions to develop a different bridge architecture by seeding LayerZero and Axelar Network.
