SNEAK PEEK

• Gate.io to take legal action against individuals who spread panic.
• The rumors gained traction following several events involving Multichain.
• Multichain has faced technical difficulties since May.

Gate.io, a centralized cryptocurrency exchange, has responded strongly to rumors suggesting the platform is on the verge of bankruptcy. Speculation about Gate.io’s financial troubles began circulating in May, with some crypto community members linking the exchange to the struggling cross-chain protocol, Multichain.

In a recent Twitter announcement written in Turkish, Gate.io threatened legal action against individuals spreading unfounded rumors and causing panic among investors. The exchange emphasized the need for concrete sources before making any judgments regarding its financial stability.

Tüm kullanıcılarımızın bilgisine arz ederiz.
Sahte ve gerçeklik payı olmayan söylentilere lütfen itibar etmeyiniz. pic.twitter.com/6SpuKx0rU8

— Gate.io (@gate_io) June 4, 2023

The rumors surrounding Gate.io’s insolvency gained traction following several events involving Multichain. The protocol encountered technical difficulties on May 24, resulting in transaction delays due to a node issue. Several days later, Multichain’s team revealed their inability to contact the CEO and gain access to the servers, fueling speculation that Chinese authorities had arrested the leadership and seized over $1.5 billion in smart contract funds.

On May 24, data from blockchain analytics firm Arkham Intelligence indicated significant multichain token (MULTI) inflows from Gate.io’s platform. However, Gate.io dismissed any liquidity concerns on May 31, asserting that their operations were functioning smoothly and that withdrawals were unaffected. Despite reports of traders withdrawing funds flooding social media channels like Twitter and Telegram, the exchange’s trading volume has remained relatively stable recently.

Gate.io’s response underscores the importance of relying on reliable sources rather than unsubstantiated rumors and gossip. The exchange is determined to protect its reputation and reassure investors that it operates healthily. As the crypto community awaits further updates, exercising caution and verifying information from credible sources is essential before making any investment decisions.