Gate.io Denies Rumors of Insolvency Amid Multichain Controversy

According to a cointelegraph report, Gate.io, a centralized cryptocurrency exchange, has addressed rumors of illiquidity and insolvency circulating on social media. On May 31, the exchange released a statement categorically denying any issues with its operations or withdrawals, countering the allegations made by several Twitter channels. Gate.io emphasized that its operations are running smoothly and underscored its current focus on establishing a affiliated trading platform in Hong Kong called Gate.HK.

Speculation about Gate.io’s financial health arose in connection with the cross-chain router protocol Multichain (MULTI). On May 24, Arkham Intelligence, a blockchain analytics firm, published data suggesting a significant influx of MULTI tokens into Gate.io. Arkham Intelligence linked this activity to rumors about the alleged arrest of the Multichain team in Shanghai.

Furthermore, on May 25, Binance, a major cryptocurrency exchange, suspended deposits for various bridged tokens reliant on the Multichain protocol, including Polkastarter (POLS), Alpaca Finance (ALPACA), and Fantom (FTM). Binance explained that these tokens were experiencing delayed transactions and temporarily halted deposits as they sought clarification from Multichain.

Adding to the controversy, Multichain issued a statement on May 31 disclosing the disappearance of its CEO and mentioning that certain routers within the protocol were no longer functioning, as only the CEO had access to the corresponding servers. On the same day, Twitter users shared screenshots of transactions purportedly showing large deposits of FTM from Multichain team members to Gate.io.

According to blockchain data, more than $10 million worth of FTM was transferred from an unidentified user to Gate.io between May 25 and May 26. However, the account owner responsible for the transaction remains unknown.

While Gate.io received multiple deposits of MULTI and Fantom, some Twitter users raised concerns about the potential impact of the Multichain situation on the exchange. In response, Gate.io’s team firmly refuted these rumors and reiterated that all withdrawals are being processed as usual, emphasizing that the exchange is operating normally.

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