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Gate.io Exchange Threatens Crypto Community With Lawsuits Over Bankruptcy Rumors

Gate.io threatened sue members of the community spreading unconfirmed information about the possible bankruptcy of the cryptocurrency exchange.

“People who cause panic among investors only by rumors and gossip, without reliance on any specific source, will be prosecuted,” the report says.

Rumors of Gate.io’s insolvency arose amid problems with the Multichain cross-chain protocol. On May 21, users complained about transactions stuck in the blockchain due to an error during the network upgrade.

Due to network issues, the Binance cryptocurrency exchange has been forced to suspend deposits in POLS, ACH, BIFI, SUPER, AVA, SPELL, ALPACA, FTM, FARM, and DEXE tokens.

Multichain developers have promised compensation to users affected by the “force majeure”. On the same day, despite the ongoing uncertainty around the project, the quotes of the MULTI token jumped by 36%.

In June, the team reported that they were unable to contact their chief executive Zhao Jun amid ongoing technical problems. There were rumors in the community about the arrest of Multichain employees in China.

Against the backdrop of events, large holders of MULTI began to move funds, including using Gate.io.

Some users expressed concerns regarding the future operation of Gate.io due to the alleged connection with Multichain. However, representatives of the platform statement dated May 31, they stressed that all “operations are proceeding normally.”

“[…] withdrawals are proceeding properly and there are no rumored issues with our operations or withdrawals.”

Recall that on June 5, Multichain Vice President Tung Din announced the resumption of the Router 2 gateway bridge, which caused network problems.

Source: Cryptocurrency

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