Gate.io Clamps Down on Rumors Following Twitter Upheaval Over Multichain

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October 23, 2023 06:32 EDT

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Cryptocurrency exchange Gate.io disputed rumors of insolvency after tweets were sent alleging a connection between it and Multichain.

“We would like to clarify that our operations are running healthily, withdrawals are functioning properly, and there are no issues with our operations or withdrawals as rumored,” Gateo.io said in a statement on Wednesday.

Twitter posts showed troubles at Multichain, a bridging platform for crypto, that could have a bearing on Gate.io, according to Bloomberg News. 

Multichain’s CEO Zhaojun was unable to be contacted, according to Multichain’s Twitter account.

“In the past two days, the Multichain protocol has experienced multiple issues due to unforeseeable circumstances. The team has done everything possible to maintain the protocol running, but we are currently unable to contact CEO Zhaojun and obtain the necessary server access for maintenance,” the bridging protocol said. 

In the past two days, the Multichain protocol has experienced multiple issues due to unforeseeable circumstances. The team has done everything possible to maintain the protocol running, but we are currently unable to contact CEO Zhaojun and obtain the necessary server access for…

— Multichain (Previously Anyswap) (@MultichainOrg) May 31, 2023

Unpacking the past 24 hours

Multichain’s tweet was retweeted by Binance CEO Changpeng Zhao, or CZ, yesterday, and many others.

Stay #Safu! https://t.co/pKKblkBGBD

— CZ 🔶 BNB (@cz_binance) May 31, 2023

Blockfence, a firm that protects against scams and fraud, retweeted it as well and told people to withdraw or transfer assets. 

Nansen reported $131 million in net outflows from Gate.io on Ethereum as of Thursday morning.

“In the last 24H, there’s $131M net outflow from https://Gate.io on Ethereum. To put it in perspective, their 7-day net outflow is $144.8M,” the analytics firm said.

In the last 24H, there’s $131M net outflow from https://t.co/1ytn2u8PEf on Ethereum

To put it in perspective, their 7-day net outflow is $144.8M

Gate still holds $2.4B in assets, incl:
18% in $GT
15% in $ETH
15% in $BTC
and others

Monitor here for free: https://t.co/2e8wgcDn6S pic.twitter.com/hUFcMXn5w1

— Nansen Portfolio (@nansenportfolio) June 1, 2023

Multichain has not tweeted since Wednesday about the situation. 

Gate.io said in its Wednesday statement that it is “an established and well-operated exchange.”

“We remain committed to providing users with secure, efficient, and reliable digital asset trading services,” the firm said.