Centralized crypto exchange Gate.io has threatened legal action in response to rumors of imminent bankruptcy. Crypto community members have been speculating since May about a possible connection between Gate.io and the troubled cross-chain protocol Multichain.
“Legal proceedings will be initiated against people who cause panic among investors only with rumors and gossip, without relying on any concrete source,” reads a June 4 Twitter announcement originally written in Turkish.
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
Gate.io’s insolvency rumor surfaced after a series of events involving Multichain. The cross-chain protocol has been experiencing technical difficulties since May 24, when a node issue delayed transactions. A few days later, Multichain’s team disclosed it couldn’t contact its CEO to access the servers and resolve the problem, fueling previous rumors that the protocol’s leadership had been arrested and over $1.5 billion in smart contract funds seized by Chinese authorities.
Data from Blockchain analytics firm Arkham Intelligence on May 24 showed large inflows of Multichain tokens (MULTI) from Gate.io’s platform.
Gate.io first denied liquidity issues on May 31, claiming its operations were “running healthy” and that withdrawals were not an issue. Although Twitter and Telegram channels have been flooded with reports of traders withdrawing funds, the exchange’s trading volume appears to remain relatively steady in the past few days.
At the time of writing, its native token, GateToken (GT), trades at $4.29, a decline of 9
Go to Source to See Full Article
Author: Ana Paula Pereira
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
