Gate.io denied rumours of illiquidity on May 31, stating that there are no issues with our operations or withdrawals as rumoured.
The statement comes after numerous Twitter channels had alleged that the exchange was experiencing insolvency due to an alleged connection between it and the cross-chain router protocol Multichain.
The Gate.io team said the company’s operations are running healthy and that it is focused on establishing an affiliated trading platform in Hong Kong called Gate.HK.
Rumours about Gate.io’s insolvency erupted after a series of events relating to Multichain. On May 24, blockchain analytics firm Arkham Intelligence posted data showing large inflows of MULTI to Gate.io, which Arkham said was related to rumours of the protocol’s team “allegedly being arrested in Shanghai.”
On May 25, Binance suspended deposits for several bridged tokens that relied on the Multichain protocol, including bridged versions of Polkastarter , Alpaca Finance, and Fantom. Binance said these tokens were experiencing delayed transactions and temporarily paused deposits while seeking clarity from Multichain.
Blockchain data confirms that more than $10 million of FTM was transferred from an unknown user to Gate.io on May 25-26. Cointelegraph was not able to determine the identity of the account owner performing the transaction.
After seeing multiple deposits of MULTI and Fantom to Gate.io, some Twitter users suspected that the exchange was exposed to fallout from Multichain.
The team at Gate.io has denied these rumours, stating that the exchange is processing all withdrawals and operating normally.
