Multichain, a major crypto-world bridging protocol, has announced that it will cease operations after the Chinese police detained CEO Zhaojun and sister.

Multichain stated that it was forced to take the action due to “lack of alternative information sources and operational funds,” on Friday in a post on its Twitter page.

Multichain reported that Zhaojun had been “taken” away by Chinese police, with all of his computers, phones and hardware wallets confiscated. It said that his sister was arrested on Thursday.

The team had not had contact with Zhaojun, and they have maintained their day-to-day operation relying upon existing access to servers which had not been revoked. They also received assistance from Zhaojun’s sister who transferred all remaining assets of the router pool in a “preservation measure.” Multichain stated that since the sister is no longer in contact, “the status of the assets” she has preserved are uncertain.

Last week, the protocol’s fragile existence was brought to light when was exploited by an attacker for $130,000,000.

Multichain stated in a Twitter thread that “Accordingly to Zhaojun’s Sister, login information for an IP address located in Kunming, as well as a series operations transferring money from the MPC addresses, was found on he cloud server platform.”

Multichain’s MULTI token is down almost 12% for the day as of the writing. It had fallen from $2.28, which was the price at the time the announcement was made, to $2.01.

UPDATE: (July 14, at 9:50 am UTC): Added timing of sister’s detention, asset transfer, June hack and MULTI token.

Sheldon Reback is the editor.