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Crypto exchange Binance announced its plans to suspend deposit and withdrawal services for eight Multichain-bridged tokens starting July 7.
Earlier in May, many users of the cross-chain protocol Multichain (MULTI) reported long delays in their transactions. Soon, rumors of Multichain CEO Zhao Jun going missing and potential police investigations flooded Twitter. This prompted Binance to suspend deposit facilities for ten Multichain-bridged tokens.
On May 27, the Multichain team confirmed that they were unable to contact Zhao. The team reasoned that they could not fix the server issues without receiving authorization from the protocol’s CEO. The announcement caused the value of MULTI to plummet by 60% within a few hours.
In the latest blog post, Binance revealed that the suspension will apply to eight tokens. These include Polkastarter (POLS), Alchemy Pay (ACH), Superverse (SUPER) via BNB Smart Chain, and Beefy Finance (BIFI) via the Fantom network (FTM), among others.
Binance assured the community that users will be able to deposit and withdraw the affected tokens via other networks supported by the exchange. A spokesperson for Binance claimed that the suspension of services is a precautionary measure meant to protect client assets.
Many of the flagged tokens, including Alchemy Pay, Polkastarter, and Beefy Finance experienced a fall in their prices shortly after Binance made the announcement.