Gate.io, the centralized crypto exchange, denied all rumors of its liquidity on 31st May, claiming that there were absolutely no issues with withdrawals or operations as rumored by several media houses. The statement came after quite a few channels on Twitter went on to allege that the exchange had been experiencing insolvency as a result of an alleged connection between the exchange and the cross-chain router protocol called Multichain. The team from the exchange stated that the operations of the company were running healthy and that it had started focusing on creating an affiliated trading platform in Hong Kong which was called Gate.HK.
Gate.io Could Be In A State Of Bother With Its Debacles With Multichain
Rumors regarding the insolvency of Gate.io surfaced after a bunch of events occurred with Multichain. On 24th May, Arkham Intelligence, a blockchain analytics firm, posted data that showed large inputs of MULTI to Gate.io, which the analytics firm stated was related to rumors that the team of the protocol had been arrested in Shanghai.
On 25th May, Binance also went ahead and suspended the deposits for several bridged tokens that had been relying on the Multichain protocol, which included bridged versions of Alpaca Finance, Polkastarter, and Fantom. Binance mentioned that the tokens had been experiencing some form of a delayed transaction, and had temporarily paused the deposits while they were seeking clarity from Multichain.
On 31st May, Multichain posted a statement that the CEO of this company was missing, adding that some of the routers of the protocol didn’t work anymore, because only the CEO had some form of access to the servers that were relevant. The very same day, certain users on Twitter started posting images of transactions that had been linked to members of Gate.io.
