Gate.io Dismisses Hack Rumors, Assures Platform Security

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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December 13, 2024 08:54 EST

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Gate.io, one of the leading cryptocurrency exchanges, has firmly denied recent rumors about a potential hacking incident. The speculation surfaced on social media earlier on December 13, originating from significant withdrawals observed on the platform.

In response, Gate.io issued a series of reassurances, emphasizing that its operations remain unaffected and that the platform maintains a 100% reserve fund exceeding $10 billion. Gate.io clarified that the withdrawals discussed were routine and unrelated to security breaches.

In a statement shared on X, the exchange’s security team confirmed no abnormalities in deposits, withdrawals, or trading activities and urged users not to believe unfounded rumors.

Gate.io Hack: Rumor Or Covered Loss?

The alarm began with social media posts, including X and Telegram, speculating about a potential hack due to a noticeable spike in withdrawal activity on Gate.io.

Observers pointed to Arkham Intelligence data highlighting large fund movements.

While these occurrences sometimes indicate wallet rotations or mislabeling by analytics platforms, they fueled concern among the crypto community.

Kevin Lee, Gate.io’s CTO, reassured users, stating:

“Deposits, withdrawals, and trading are functioning normally. Please do not believe rumors! Gate.io has more than 100% reserves, with the latest reserves exceeding $10 billion. It’s business as usual.”

He also announced a live address on X to dispel lingering doubts and reaffirm the platform’s commitment to transparency and security.

Gate.io’s clarification, coupled with the absence of any unusual activity on the blockchain, helped to quell fears and prevent significant market disruption. DefiLlama data indicated minimal asset movement, suggesting that most users did not panic withdraw their funds.

While the exchange maintained that the withdrawals were part of routine operations or potential wallet rotations, it strongly condemned the spread of unverified information.

Community Reaction and Broader Implications

Posts cautioning users to withdraw their assets from Gate.io sparked concerns across the community. This has mostly had a ripple effect across the market since users have been sensitive to security breaches following high-profile hacks in recent years.

Just this month, a report claimed that Japanese cryptocurrency exchange DMM Bitcoin winded down operations following a $320 million loss in Bitcoin caused by a private key hack in May.

The breach compromised over 4,500 Bitcoins and left the company struggling to recover despite assurances to safeguard customer assets.

The hack, one of Japan’s largest since the 2018 Coincheck breach, was linked to the North Korean cybercrime group Lazarus, known for laundering stolen funds through shady platforms.

A recent report also confirmed that Radiant Capital’s $50 million hack of its decentralized finance (DeFi) platform was orchestrated by a hacker linked to these same North Korea.

In response to this massive sensitivity in the market, Gate.io reinforced its commitment to security and transparency in follow-up statements.

The exchange claimed to adhere to a 100% reserve policy, maintaining over $10 billion in reserves to safeguard users’ assets at all times.

Gate.io also criticized disseminating false information, stating that it “strongly condemns” attempts to spread panic among its users.

The exchange warned that it reserves the right to pursue legal action against parties responsible for spreading these rumors.