Gate.io Net Outflow Over $160 Million In Last 24H Due To Multichain Contact
- Cryptocurrency exchange Gate.io saw a net withdrawal of $162,284m after being hit by Multichain’s FUD.
- Previously, the exchange denied rumors of illiquidity on May 31.
- On May 24, blockchain analytics firm Arkham Intelligence posted data showing a massive MULTI inflow into Gate.io that led them to perceive a connection between the two organizations.
Amidst the concerns about Multichain, the exchange it is contacted with, Gate.io, is also under pressure from users fleeing more than $160 million in the last 24 hours.
Due to community rumors being evaluated by the police, Gate had a net outflow of $160 million in the past 24 hours, accounting for about 13% of its net reserve assets of $1.26 billion (excluding GT). Centralized crypto exchange denied rumors of illiquidity on May 31, saying, “There are no problems with our operations or withdrawals as rumored.”
The statement comes after the crypto community went viral on Twitter, alleging that the exchange is experiencing insolvency due to an alleged connection between it and the cross-chain router protocol Multichain (MULTI).
The Gate.io team said “the company’s operations are going well” and that it is focusing on setting up an affiliated trading platform in Hong Kong called Gate.HK.
Rumors of Gate.io insolvency broke out after several events related to Multichain. On May 24, blockchain analytics firm Arkham Intelligence posted data showing a large MULTI inflow into Gate.io, which the Multichain project team “is said to have been captured in Shanghai” along with associated wallets about $1.5 billion to $1.6 billion in controlled money.
Yesterday there were also rumors that its Founder and CEO Zhao Jun was arrested by Chinese police in Shanghai for investigation. The community exploded when the project itself posted a statement that their CEO was missing, adding that some of the protocol’s routers were no longer working because only the CEO had access to them. access to the relevant servers.
After seeing multiple MULTI and Fantom deposits into Gate.io, some Twitter users suspected that the exchange could be affected by Multichain.
Although the team at Gate.io has denied these rumors, saying that the exchange is processing all withdrawals and operating normally, it can still not prevent users from panicking to withdraw money to avoid risk.
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