Gate.io Dispels Rumors Of Its Demise Amid Multichain Failure

Last week, the price of Multichain Token dropped by almost 20% due to the news of disturbances in withdrawals. The exact reason why the transaction stuck in Multichain Token is still unknown, although there are two theories.

potential legal trouble

Previously, MULTI deposits and withdrawals were known to be stuck due to poorly executed system updates that took longer than usual. However, rumors that the dev team had actually been arrested in Shanghai began spreading like wildfire shortly after.

These speculations remain unconfirmed. However, it has been confirmed by the Multichain team that the CEO is gone missingLeaving devs without the necessary access to perform server maintenance, which may explain the downtime.

after rumors of @MultichainOrg team is reportedly being arrested in Shanghai, some big holders $multi Fund transfer has started.

Team wallets running ~$3M $multi To has scared off some investors as well $multi The price is down 26.5% in 24 hours. pic.twitter.com/p2sQpu9Ass

— Arkham (@ArkhamIntel) May 24, 2023

At the time, an unknown user sent $2.75 million worth of MULTI to Gate.io, sparking concerns that the two platforms were linked.

Over the past week, even more assets allegedly belonging to members of the Multichain team have been transferred to Gate.io – notably via a chain Exchange Adding approximately $10 million worth of Phantoms.

(🍽) on the bus:

there are rumors that The team is arrested. sent multichain team $10 million in USD $FTM, Is this a massive ongoing issue? pic.twitter.com/1XXbwGMoPs

— CoinSumption (@CoinSumption) May 31, 2023

Although, at this point, we can safely say that the Multichain team is probably in a bit of a pickle, wild accusations started flying, singling out Gate.io for allegedly being an ongoing cover for the Multichain team, whom they are allegedly linked.

Gate.io debunks the rumors

To calm the waters, the team at Gate.io published a statement, saw By Bloomberg, denying his involvement in the matter and clarifying what he has been doing lately.

According to a Gate.io spokesperson, the platform’s staff are more preoccupied with the 10-year anniversary of the platform they run and the paperwork – specifically a Virtual Asset Service Provider (VASP) license – required for their new launch. Hong Kong focused trading platform.

“Recently, rumors have been circulating about Gate.io. We would like to clarify that our operations are running smoothly, withdrawals are working properly, and there is no problem with our operations or withdrawals, as has been rumored. The Gate.io team is currently focused on our 10th anniversary celebration and the launch of Gate Group’s Hong Kong trading platform, Gate.HK.”

A Gate.io spokesperson also took the opportunity to tease some upcoming goodies for the Gate community — including a series of “user campaigns” to celebrate the platform’s 10th birthday.

Following the controversy, analytics platform LookOnChain decided to publish an updated view of the assets stored on Gate.io’s platform.

Due to the drop in GetToken price and rumors of bankruptcy, we updated the assets of @gate_io,

The 6 wallets hold a total of $1.44B in assets.

Involved:
97m $ gt($434 million) → 30%
149,648 $ETH($279 million) → 19%
182M $USDT→ 13%
2,612 $BTC($70M) → 5%
6t $shib($52M) → 4%
,

Hope this will help you. pic.twitter.com/QkXgidvuBn

— lookonchain (@lookonchain) June 1, 2023