Several Twitter users posted transactions showing massive MULTI and FTM inflows into Gate.io, making them aware of a connection between the two institutions.
Centralized crypto exchange Gate.io denied rumors of illiquidity on May 31, saying “there are no problems with our operations or withdrawals as rumored.” The statement comes after multiple Twitter channels allege that the exchange is experiencing insolvency due to an alleged connection between it and the cross-chain protocol Multichain (MULTI).
The Gate.io team said that “the company’s operations are going well” and that they are focused on setting up a affiliated trading platform in Hong Kong called Gate.HK.
Rumors of Gate.io insolvency broke out after a series of events related to Multichain. On May 24, blockchain analytics firm Arkham Intelligence posted data showing massive MULTI inflows into Gate.io, which Arkham said is related to rumors about the protocol’s CEO “which is said to have been deprecated. caught in Shanghai”.
On May 25, Binance halted deposits for several bridging tokens based on the Multichain protocol, including bridging versions of Polkastarter (POLS), Alpaca Finance (ALPACA), and Fantom (FTM). Binance says these tokens are experiencing delayed transactions and temporarily halted deposits while seeking clarity from Multichain.
On May 31, Multichain posted a statement that their CEO was missing, adding that some of the protocol’s routers are no longer functional because only the CEO has the authority to do so. access the relevant servers. On the same day, several Twitter users started posting images of transactions that were supposed to be large FTM deposits from Multichain team members to Gate.io.
Blockchain data confirms that over 10 million USD of FTM was transferred from an unknown user to Gate.io on May 25-26. Cafebitcoin was unable to determine the identity of the account owner making the transaction. .
After seeing multiple MULTI and Fantom deposits into Gate.io, some Twitter users suspected that the exchange could be affected by Multichain.
The team at Gate.io has denied these rumors, stating that the exchange is processing all withdrawals and operating normally.