In the past 24 hours, cryptocurrency exchange Gate.io has come under fire as it faced a net outflow of $150 million, resulting from community rumors being investigated by the police. This accounts for nearly 10% of the platform’s net reserve assets. In response, Gate.io issued a statement to clear the air, denying liquidity concerns, and assuring that their operations are running smoothly with no problems in withdrawals.
The rumors in question involved alleged solvency issues with Gate.io due to a supposed connection between the exchange and the cross-chain router protocol Multichain (MULTI). However, the exchange clarified that its “operations are running healthy,” and it is currently focusing on establishing an affiliated trading platform in Hong Kong called Gate.HK.
These allegations of insolvency were reportedly triggered by blockchain analytics firm Arkham Intelligence, which suggested that due to large inflows of MULTI tokens to Gate.io, the platform was potentially at risk from Multichain’s recent setbacks. It is important to note that the Multichain team had recently announced the disappearance of its CEO, causing some router protocols to cease functioning, as only the CEO had access to the relevant servers.
This fueled speculation further as, following these events, some Twitter users began sharing images of transactions that claimed to be large deposits of FTM, a cryptocurrency token by Multichain, to Gate.io from Multichain team members. According to data from etherscan, over $10 million of FTM was transferred from an unknown user to Gate.io on May 25-26. Nonetheless, the identity of the account owner who transferred those funds remains unconfirmed.
So, while the debate on Gate.io’s involvement with Multichain continues, the exchange remains adamant in clearing its name, facing the situation head-on by actively denying any liquidity concerns. Although the outcome of this situation is uncertain, it demonstrates a keen reminder for crypto enthusiasts to always remain vigilant and conduct thorough market research before investing in digital assets.
As with most financial endeavors, the presented content and personal opinions of the author are subject to market conditions. Thus, crypto investors should do their own market research before investing, as neither the author nor the publication holds any responsibility for personal financial loss.
Source: Coingape
