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In a significant development, cryptocurrency exchange Gate.io has experienced a staggering $150 million net outflow within a 24-hour period, fueled by rumors of a police investigation and its alleged ties to the embattled cross-chain router protocol Multichain. The exchange has dismissed these speculations as fear, uncertainty, and doubt (FUD).
Addressing concerns raised by the community and circulating on social media platforms, Gate.io confirmed that its operations remain uninterrupted, with no withdrawal issues affecting its users.
Gate.io refutes liquidity concerns
Gate.io, a prominent player in the crypto exchange market, has firmly denied rumors suggesting any liquidity concerns following allegations on Twitter. Several channels claimed that the exchange was on the brink of insolvency due to its purported connection with Multichain (MULTI), the cross-chain router protocol.
The exchange clarified its position, stating that its operations are “running healthy” and highlighted its focus on establishing Gate.HK, an affiliated trading platform in Hong Kong.
Multichain controversy adds to the pressure
The controversy surrounding Multichain has further intensified the scrutiny on Gate.io. Multichain recently disclosed that its CEO is missing, resulting in certain routers associated with the protocol becoming non-functional since only the CEO had access to the relevant servers. In response, social media users began sharing images of transactions allegedly involving large deposits of Fantom (FTM) from Multichain team members to Gate.io.
Blockchain analytics firm Arkham Intelligence also tweeted data showcasing significant inflows of MULTI to Gate.io, connecting it to rumors of the protocol’s team facing alleged arrests in Shanghai. Notably, etherscan data revealed that over $10 million worth of FTM had been transferred from an unidentified user to Gate.io between May 25 and May 26. However, the ownership of the account responsible for these transfers remains unconfirmed.
Speculation fuels concerns of Gate.io’s stability
As a result of the substantial deposits of MULTI and Fantom into Gate.io, rumors began to circulate on Twitter, suggesting that the crypto exchange could be vulnerable to the repercussions of the Multichain saga, potentially leading to a bank run scenario.
Gate.io, while facing increased scrutiny, remains committed to maintaining its operations and addressing the concerns raised by its users. The exchange emphasizes that it continues to operate normally and looks forward to further expanding its presence with the establishment of Gate.HK.
As the situation unfolds, market participants and cryptocurrency enthusiasts closely monitor the developments surrounding Gate.io and its alleged connection to Multichain, awaiting further clarity on the matter.
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