Gate.io management posted a tweet in Turkish stating that people who sow panic among investors and spread rumors about the possible bankruptcy of the exchange without relying on any specific source will face legal proceedings.
Rumors of Gate.io’s insolvency arose due to technical difficulties with the Multichain internetwork protocol that arose on May 24th. Part of its routes suddenly stopped working, as a result of which $1.5 billion of user funds were blocked.
A few days later, the Multichain team reported that they could not contact their CEO to access the servers and resolve the issue. This reinforced the rumors that the management of Multichain could be under arrest, and that $1.5 billion could be confiscated by the Chinese authorities.
According to Blockchain analytical company Arkham Intelligence, on May 24, there was a large outflow of Multichain crypto assets (MULTI) from the Gate.io platform. However, a few days ago, the exchange denied reports of liquidity problems, saying that its operations are carried out as usual, the withdrawal of funds is without problems, and the volume of trading on the exchange remains relatively stable.
Due to issues with the Multichain protocol, other marketplaces have been forced to take action. For example, on May 25, the largest exchange, Binance, suspended deposits for 10 Multichain bridge tokens on the BNB Smart Chain, Fantom, Ethereum, and Avalanche networks.
Source: Bits
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