MULT Explodes 120% When Multichain Closes: Insider Trading Footprint?

When the Multichain cross-chain router protocol ceases operations, its native token MULT experiences a spectacular surge of 120% in the past 24 hours. This contradictory phenomenon has sparked widespread speculation among analysts that insider trading activities may be taking place within the ecosystem.

The Tragic End of Centralized Leadership

Multichain ran into serious trouble when its CEO, Zhaojun He, was arrested by Chinese authorities last May. This was a critical moment that changed everything: Zhaojun He was the only person with access to the protocol’s multi-party computation (MPC) node servers. Such a centralized structure made it impossible for other Multichain team members to access user funds worth billions of dollars.

In an effort to regain control, the team sought help from Zhaojun’s family. His sister, who had access to the CEO’s account and is suspected of holding assets worth $220 million, was also arrested by authorities in July. Without clear leadership and adequate communication, Multichain had no choice but to announce the suspension of operations in mid-month.

Why Did MULT Surge During a Crisis?

The 120% increase in MULT over the past 24 hours—currently trading at $2.25—seems highly suspicious given the context of the shutdown. Speculators suspect that certain parties may have obtained insider information about the crisis before the public was aware and used this knowledge to trade for unfair gains.

Such insider trading involves buying or selling assets based on sensitive information not yet available to the public. In the case of MULT, the price spike occurred precisely when bad news was already certain—operations halted, funds locked, and no clear way out. This anomaly suggests the possibility of coordinated transactions by parties who knew about the crisis developments earlier.

Broader Impact on the Ecosystem

The shutdown of Multichain not only affected the MULT token. Platforms like Fantom, one of the largest users of the Multichain bridge, experienced significant impacts. According to DeFiLlama data, the total value locked (TVL) on Fantom plummeted from over $300 million to just $53 million—a decline of 82% since May, when the Multichain crisis was revealed.

The Multichain incident serves as an important lesson for the ecosystem about the risks of dependence on protocols with single points of failure. When leadership and technological control are centralized in one individual, the entire ecosystem becomes vulnerable to external disruptions. This case also highlights the importance of transparency in communication and diversification of control within blockchain protocols.