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The management of Gate.io published a tweet in Turkish saying that people who sow panic among investors and spread rumors about the possible bankruptcy of the exchange without reference to any specific source will face legal action.<br
Rumors about Gate.io’s insolvency arose due to technical difficulties with the Multichain interconnect protocol that arose on May 24. Some of its routes suddenly stopped working, resulting in $1.5 billion in blocked user funds;
A few days later, the Multichain team said it could not contact its CEO to gain access to the servers and resolve the problem. This bolstered confidence in rumors that Multichain’s management may be under arrest and the very $1.5 billion may be confiscated by Chinese authorities.
According to Blockchain analytics company Arkham Intelligence, there was a large outflow of Multichain crypto-assets (MULTI) from the Gate.io platform on May 24. However, a few days ago the exchange denied reports of liquidity problems, saying that its transactions are carried out as usual, there are no problems with withdrawals, and trading volume on the exchange remains relatively stable.
Due to problems with Multichain’s protocol, other exchanges were forced to take action. For example, on May 25, Binance, the largest exchange, suspended deposits for 10 Multichain bridge tokens in BNB Smart Chain, Fantom, Ethereum and Avalanche.