June 6, 2023
By Sharan Kaur Phillora
The CEO of Multichain, a leading cross-chain bridging protocol, is reportedly unreachable, according to a recent company statement. The unanticipated turn of events has sparked multiple issues in its cross-chain bridges over the past couple of days.
Here’s what we know:
Unable to get in touch with CEO Zhaojun, who possesses the vital information to access the cross-bridge servers, the company has had to pause its cross-chain bridging operations. With the servers shut down, Multichain cannot maintain its cross-bridge protocols with Kekchain, PublicMint, Dyno Chain, Red Light Chain, Dexit, Ekta, HPB, ONUS, Omax, Findora, and Planq.
Recent murmurs about restricted access to Multichain servers found credibility with this announcement, confirming suspicions that at least one individual with server access keys is unaccounted for. Crypto news outlet Coindesk acknowledged the initial emergence of this issue last week, with their efforts to reach Zhaojun proving futile.
Despite China’s history of tech and financial sector interventions, the possibilities are limited for an on-chain project like Multichain. However, China could aim for control over the transactions and balances held by the bridge, which could align with its recent acceptance of web3.
This situation could potentially lead to serious consequences for Multichain’s users. If enough control over the wallet is with the apprehended parties, they could be compelled to create a “backdoor,” allowing the authorities to alter the bridge’s state at their discretion. Unfortunately, users might remain unaware of this vulnerability until the occurrence of the first exploit.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
