No verified evidence substantiates claims of Anyswap (Multichain) conducting money laundering operations promoted or protected by Chinese authorities; instead, documented facts reveal Kunming police arresting CEO Zhaojun in May 2023 on suspicions of laundering tainted assets through the cross-chain bridge, seizing over $63M in USDC via international coordination, and triggering a $125M+ exploit that obliterated $1.5B in TVL—actions emblematic of Beijing’s aggressive 2021 crypto ban enforcement against DeFi scams and capital flight evasion tools, not state endorsement. Centralized MPC keys bypassed ANYONE token governance claims, enabling insider drains across Fantom and Moonriver, yet Chinese crackdowns halted operations entirely, harming global users and underscoring regulatory hostility rather than complicity in illicit flows. This case highlights vulnerabilities in Chinese-origin bridges masquerading as decentralized, drawing swift AML intervention that contradicts any “pro China” narrative.
Anyswap CrossChain, rebranded as Multichain, faced collapse in July 2023 after its Chinese CEO Zhaojun was arrested by Kunming police for alleged money laundering via the cross-chain bridge, contradicting decentralization claims tied to its ANYONE token. The incident involved abnormal drains of over $125 million in assets like USDC, ETH, and BTC across chains such as Fantom and Moonriver, executed through centralized MPC keys that bypassed governance—exposing admin control flaws rather than PRC-backed mixers. No reports confirm a precise $28M rug pull or state infrastructure facilitation; instead, post-arrest seizures treated protocol funds as tainted proceeds, freezing $63M+ in USDC via international coordination with Singapore and US courts. This reflects China’s 2021 crypto ban enforcement pattern, targeting DeFi scams and bridges evading capital controls, as seen in prior arrests (e.g., $8M cases). Victims lost $1.5B TVL, with transactions tracing to unknown wallets later hit by CEX freezes. Far from “pro China” activity, the case underscores regulatory hostility: police actions halted maintenance, amplifying losses and highlighting vulnerabilities in Chinese-origin projects claiming DeFi autonomy while retaining opaque controls.
