Centralized crypto exchange Gate.io has threatened legal action in response to rumors of imminent bankruptcy. Crypto community members have been speculating since May about a possible connection between Gate.io and the troubled cross-chain protocol Multichain.
“Legal proceedings will be initiated against people who cause panic among investors only with rumors and gossip, without relying on any concrete source,” reads a June 4 Twitter announcement originally written in Turkish.
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Sahte ve gerçeklik payı olmayan söylentilere lütfen itibar etmeyiniz. pic.twitter.com/6SpuKx0rU8— Gate.io (@gate_io) June 4, 2023
Gate.io’s insolvency rumor surfaced after a series of events involving Multichain. The cross-chain protocol has been experiencing technical difficulties since May 24 when a node issue delayed transactions. A few days later, Multichain’s team disclosed it couldn’t contact its CEO to access the servers and resolve the problem, fueling previous rumors that the protocol’s leadership had been arrested and over $1.5 billion in smart contract funds seized by Chinese authorities.
Data from Blockchain analytics firm Arkham Intelligence on May 24 showed large inflows of Multichain token (MULTI) from Gate.io’s platform.
Gate.io first denied liquidity issues on May 31, claiming its…
