Chinese police are conducting searches at the offices of the cryptocurrency exchange Gate.io, according to journalist Colin Wu. There is no official confirmation from the company; the platform is operating normally.
Wu says that investors in the KIMCHI.finance project allegedly complained to the exchange.
Wu: The Chinese exchange https://t.co/K3WVOtC1PT, in the Guangdong office, was reported by users for Kimichi coins, and the police went to conduct a search. pic.twitter.com/dJiG3faM5u
— Colin Wu（WuBlockchain） (@WuBlockchain) September 10, 2020
The project positions itself as a DeFi protocol offering earnings through liquidity provision. Over the past week the token has fallen from $0.48 to $0.01. The decline from its all-time high amounts to 99.9%.
“It is assumed that Gate.io is suspected of creating counterfeit coins, but in reality this is related to investment losses,” Wu said in the statement.
A user going by the alias Alice Crypto reported a possible police shuttering of the exchange’s office in China.
BREAKING: https://t.co/aM7aJZ7SMh got banned by Chinese police
(Thread) pic.twitter.com/1R9RsK0wv0
— Alice Crypto (@AliceolaCrypto) September 11, 2020
Citing the source, she asserted that the exchange Gate.io was closed because it listed some yield-farming coins.
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The source said this exchange got shut down because they listed some farming coins. pic.twitter.com/a8lT3dxViT— Alice Crypto (@AliceolaCrypto) September 11, 2020
Alice Crypto also cites a comment from an unnamed company representative, who denies that Gate.io’s office in China has been shut down. According to her, the footage shows the offices of an outsourced PR team.
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The woman from https://t.co/aM7aJZ7SMh denied it’s office in #China has been shutdown. It is the office of an outsourcing PR team.But some still think the office is custom service office according to the materials found in the PC.
— Alice Crypto (@AliceolaCrypto) September 11, 2020
There were no official comments from Gate.io representatives. As of writing, the exchange’s website remains accessible. The platform operates normally.
As reported in September, Seoul police again came for raids at the offices of the bitcoin exchange Bithumb. The investigations relate to the case involving the company’s chairman Lee Jong-hoon.
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