Amid concerns related to Multichain, the Gate.io exchange is also under pressure from users as nearly $150 million has been withdrawn from the exchange in the past 24 hours.
Accordingly, on May 24, blockchain analysis company Arkham Intelligence posted data showing that a large amount of MULTI tokens were transferred to Gate.io, which made them realize a connection between the two organizations.
On the other hand, Multichain also posted a notice on the night of May 31 (Vietnam time), saying that the project has completely lost contact with CEO Zhaojun and will suspend cross-chain routes because they cannot maintain some bridge if not granted access by CEO Zhaojun..
Immediately after the news, Gate.io had to record a “bank run” application. According to data from DefiLlama, more than $146 million has been net withdrawn from Gate in the past 24 hours. This figure accounts for more than 10% of the exchange’s reported reserve of $1.26 billion (excluding the exchange’s GT token).
Exchange Gate.io was quick to deny rumors of poor liquidity on the same day, saying “there are no problems with our operations or withdrawals as rumored” and Gate.io is focus on setting up another branch in Hong Kong as the region opens up to crypto.