Gate.io threatened to sue representatives of the community who spread unverified information about a possible bankruptcy of the cryptocurrency exchange.
We would like to inform all our users. Please do not trust rumors that have no basis in truth or reality. pic.twitter.com/6SpuKx0rU8
— Gate.io (@gate_io) June 4, 2023
“Against people who cause panic among investors solely with rumors and gossip, without any basis in any particular source, lawsuits will be filed,” the statement says.
Rumors of Gate.io’s insolvency emerged amid problems with the cross-chain protocol Multichain. On May 21, users complained about transactions stuck in the blockchain due to an error during a network upgrade.
Due to network issues, the cryptocurrency exchange Binance was forced to pause deposits in the tokens POLS, ACH, BIFI, SUPER, AVA, SPELL, ALPACA, FTM, FARM and DEXE.
Multichain developers promised compensation to users affected by the “force majeure.” On the same day, despite the ongoing uncertainty around the project, the MULTI token price jumped 36%.
In June the team said that could not reach its CEO Zhao Jun amid ongoing technical problems. Rumors of the arrest of Multichain staff in China circulated in the community.
Against this backdrop, large MULTI holders began moving funds, including through Gate.io.
Some large investors like @HashKeyGroup have taken action, moving $250K to https://t.co/5ecSG3rKek around 4 hours ago.
An entity holding large amounts of $MULTI on Gate has also moved ~$1.5M to Huobi, perhaps for better pricing. pic.twitter.com/7MKnhNMeZ4
— Arkham (@ArkhamIntel) May 24, 2023
Some users expressed concern about Gate.io’s continued operation due to the alleged link to Multichain. However, platform representatives in a statement from May 31 emphasized that all “operations are proceeding normally.”
“[…] withdrawals are being processed properly, and there are no issues with our operations or withdrawals that the rumors mentioned,” the statement says.
Recall that on June 5, Multichain vice president Tong Din announced the resumption of Router 2 cross-chain bridge operation, which had caused network problems.