Gate.io raided by local police?

[Bttzed03]

This is a developing story.

Just saw video on twitter with caption:

Seems gate got raided by local police,This video has been spreading in WeChat group.  Rumors says they got raided because they listed kimchi.

For those of you who don't know, Kimchi is one of those DeFi yield farming tokens. If I am not mistaken, that token was launched last week and it was found out that the token developer can mint unlimited supply.

Story is not 100% confirmed yet but it would be hilarious to know that an exchange would be raided because of listing a scam token 


Follow up stories:

The guy on the 1st pic wearing a hoodie with gate logo on, so it seems pretty likely the raided really happened.  But not 100% confirmed .

More videos are , it’s really happened, a video of local  police check talking to a employee, that employee is telling his a WeChat friend police is on site , and police is asking him wether not if that WeChat friend is the boss of http://gate.io

[LeGaulois]

It really happened. People reported Gate to the local police because they listed a scam coin and here we go

It starts to hit the news now, Investing.com Brazil published an article some minutes ago
https://br.investing.com/news/cryptocurrency-news/gateio-e-supostamente-invadida-pela-policia-apos-listar-token-defi-782524

There are more videos to be found about it (i.e https://twitter.com/bigmagicdao/status/1304085531215589377)

More videos are , it’s really happened, a video of local  police check talking to a employee, that employee is telling his a WeChat friend police is on site , and police is asking him wether not if that WeChat friend is the boss of http://gate.io

[figmentofmyass]

everything says "local police"......i assume this is china? i'm guessing so because if you dig into gate.io, it was originally chinese exchange bter.com. they rebranded to gate.io and dropped CNY trading when the 2017 china ban came down, but i wonder if they are still operating in violation of the ban.

late last year, provincial police in shenzhen identified dozens of exchanges still illegally operating. i wonder if this has to do with a similar operation? https://cointelegraph.com/news/china-shenzhen-identifies-39-crypto-exchanges-defying-trading-ban

Cryptocurrency exchanges operating illegally in one city in China will face the wrath of a joint government effort to oust them, reports claim.

On Nov. 22, authorities in Shenzhen have identified a total of 39 exchanges falling foul of China’s cryptocurrency trading ban, according to local news outlet Sanyan Finance.

The operation reportedly included participation from China’s central bank, the People’s Bank of China (PBoC), the Economic Investigation Bureau of the Municipal Public Security Bureau and the Municipal Communications Administration.

It remains unknown what consequences the exchanges will face, with Sanyan highlighting a desire to crack down on liquidity.

A rough translation states the measures involve a three-pronged approach:

“It is reported that the action will focus on three activities: first, providing virtual currency trading services or opening virtual currency trading places in China; second, providing service channels for overseas virtual currency trading places, including services such as drainage and agency trading; Sell ​​tokens in various names, raise funds for investors or virtual currencies such as Bitcoin and Ethereum.”

[Potato Chips]

Asked them if this is true and they denied it (source: https://i.imgur.com/WeHPN89.png). We'll see in a few days if their statement would change. News sites are probably already working on this.

They did publish an article about kimchi in their chinese site just few hours ago. (OG: https://www.gatecn.io/article/17840 | google translated: https://archive.is/srEGO)
Looks like lots of people lost their money and are asking to get it back. The "Integrity of data" has been mentioned a lot tho, I wonder if it's part of the rumor too.

But well, I'm relying on a rough translation from google so...

[TravelMug]

Their defense is that it was not Gate.io but a support office of theirs. And probably police are confused as well, looking or Kimchi in the office? Lol. 

And it's interesting if the Police raided it because of people losing their money on this so called Kimchi tokens.

On other news, Gate.io will list SUN: https://www.gate.io/trade/SUN_USDT

[stompix]

Hmm...defi ...
Why all my curiosity of what was happening there died when I read the word defi?
I'm willing to bet we won't have a week this year without an exchange getting into trouble over listing some shitty token that drops to zero and the "team" behind disappears with all the money.

For those of you who don't know, Kimchi is one of those DeFi yield farming tokens. If I am not mistaken, that token was launched last week and it was found out that the token developer can mint unlimited supply.

9$ to 1 cent The future of finance! Brace yourself!
https://www.coingecko.com/en/coins/kimchi-finance
The Weimar Republic should be jealous of these achievements!

On other news, Gate.io will list SUN: https://www.gate.io/trade/SUN_USDT

Oh, this one dropped only 50% in 24h, such performance, wow, much defi!

[Bttzed03]

It's been a day since this rumor broke out but still no major news publication confirming or denying it. I checked gate.io's twitter and website but there's no official statement also. They're busy with their next DeFi listing 

Just an update from the same twitter account I posted in OP:

After $kimchi price went down massively, many users of gate lost quite a lot of money, so they’ve reported Gate, but heard from multiple resources it’s just the customer support office for gate. It should probably won’t have very big impact on Gate.

everything says "local police"......i assume this is china?

It is. I removed "China" in the title before hitting the post button. Sorry about that.

[aioc]

It really happened. People reported Gate to the local police because they listed a scam coin and here we go

It starts to hit the news now, Investing.com Brazil published an article some minutes ago
https://br.investing.com/news/cryptocurrency-news/gateio-e-supostamente-invadida-pela-policia-apos-listar-token-defi-782524

There are more videos to be found about it (i.e https://twitter.com/bigmagicdao/status/1304085531215589377)

More videos are , it’s really happened, a video of local  police check talking to a employee, that employee is telling his a WeChat friend police is on site , and police is asking him wether not if that WeChat friend is the boss of http://gate.io

How about that, first time I read that an exchange was raided for listing a scam coin, I want to read more of this that police raided other exchange for listing a known scam coins there are so many exchanges that are doing this and they should be held responsible for traders' losses, I'm looking forward to see Yobit raided for listing and creating a lot of scam coins that would be big news if that happens.

[The Sceptical Chymist]

Why all my curiosity of what was happening there died when I read the word defi?
I'm willing to bet we won't have a week this year without an exchange getting into trouble over listing some shitty token that drops to zero and the "team" behind disappears with all the money.

Yeah, but that never happened when ICOs were all the rage around the crypto space.  People were getting scammed left and right, and I don't remember hearing any reports about exchanges listing crap scam tokens being raided by law enforcement.  Why would it be different with DeFi?

Oh, this one dropped only 50% in 24h, such performance, wow, much defi!

I'm very skeptical about DeFi as well (though you sound like you're past the skeptical stage), and some of the returns these projects are promising are just incredible.  And by "incredible" I mean "not credible".  There are already videos on Youtube of people claiming they made millions with DeFi, but damned if I know how they did it.  It's all looking to me like something that's too good to be true.

Anyway, the less law enforcement is involved with crypto, the better.  I just wish there weren't so many gullible people wanting to get rich quick.

[minairia3]

I think not just gate IO but also other exchange listing some scam defi. Bithumb, cointiger and hotbit are the markets keep listing shitcoins. Ive noticed they always have some new listing even the project have no information on their site.

Same goes with gate. They are now starting to have a lower standard when it comes to listing. They are just gonna ruined their reputation for listing shitcoins.

[slaman29]

Nothing hilarious about exchanges getting arrested for listing scam tokens, kinda normal and expected that exchanges do shady shit like that (and then they later claimed they knew nothing about it or were duped by the token devs lol).

Even Binance is guilty of listing silly Defi tokens now. What can we do?

Sushiswap was copy paste, remember?

[stompix]

Why all my curiosity of what was happening there died when I read the word defi?
I'm willing to bet we won't have a week this year without an exchange getting into trouble over listing some shitty token that drops to zero and the "team" behind disappears with all the money.

Yeah, but that never happened when ICOs were all the rage around the crypto space.  People were getting scammed left and right, and I don't remember hearing any reports about exchanges listing crap scam tokens being raided by law enforcement.  Why would it be different with DeFi?

Things have changed, more people are getting involved and they are different than the average 2013 ICO investor.

It's just like everything else, from darkwebs to scooters, nobody in the government cared when there were just a bunch of people involved, now that there are thousands they simply can't let it slide, and on top of that companies have started pouring money into this so the effect of one of tho turning into a scam can turn into a cascade effect. The industry has simply become too large to let it run with no supervision.

Even Binance is guilty of listing silly Defi tokens now. What can we do?

Simply, don't trade it, if nobody invests they will get delisted pretty soon.

[figmentofmyass]

Nothing hilarious about exchanges getting arrested for listing scam tokens, kinda normal and expected that exchanges do shady shit like that (and then they later claimed they knew nothing about it or were duped by the token devs lol).

Even Binance is guilty of listing silly Defi tokens now. What can we do?

Sushiswap was copy paste, remember?

there's a lot of confusion about what happened here, and it's less serious than it first appeared IMO---more like an investigation than a shutdown. it wasn't for listing a "scam token" per se either. a bunch of salty KIMCHI investors lost money when gate.io listed it and the price subsequently dropped, then they reported the incident to local police. i'm not sure what they realistically hoped to accomplish. gate.io doesn't set the price of KIMCHI, the market does. https://beincrypto.com/gate-io-exchange-survives-police-raid/

i don't expect much to come of this.

[joniboini]

i'm not sure what they realistically hoped to accomplish. gate.io doesn't set the price of KIMCHI, the market does.

They probably argue that Gate is the one dumping on them. I think Binance can suffer the same fate with their Sushi listing, though nobody report them.

In short, exchanges are listing defi without any due diligence and expose traders/investors to a very high risk. Exchange wins, investors fucked up.

[figmentofmyass]

i'm not sure what they realistically hoped to accomplish. gate.io doesn't set the price of KIMCHI, the market does.

They probably argue that Gate is the one dumping on them. I think Binance can suffer the same fate with their Sushi listing, though nobody report them.

In short, exchanges are listing defi without any due diligence and expose traders/investors to a very high risk. Exchange wins, investors fucked up.

that sounds like 9 out of 10 ICOs or IEOs or pump/dump altcoins to me. another day, another new technology being overhyped on altcoin exchanges---nothing new to see here!

anyway, i doubt much will come of this. gate.io is functioning normally, the police only came to a satellite office (not clear what access level these employees had), and it sounds like provincial police who probably don't have much authority to do anything.

i dunno what these KIMCHI users hoped to accomplish either, aside from shooting themselves in the foot by sicking regulators on their biggest exchange.

[gentlemand]

I wonder if defi is going to limp on to fuel the next bubble or whether it falls apart before that happens. It looks like an even bigger piece of laughable shit than ICOs which is really saying something.

As for gate.io, anywhere that is 'hacked' as their former incarnation was and then loses interest in repaying customers and relaunches is a fuckhole regardless of this current situation.

[figmentofmyass]

I wonder if defi is going to limp on to fuel the next bubble or whether it falls apart before that happens. It looks like an even bigger piece of laughable shit than ICOs which is really saying something.

the timing seems wrong. ICOs blasted off in early 2017, after bitcoin made a new all time high. we're nowhere near that point now, barely past 50% of the 2017 high. unless the market goes parabolic really soon (unlikely IMO) i don't think defi can sustain the hype long enough.

i bet something else will emerge as the "ICO" of the next bubble---something that gets hyped at just the right time.

As for gate.io, anywhere that is 'hacked' as their former incarnation was and then loses interest in repaying customers and relaunches is a fuckhole regardless of this current situation.

so BTER never paid customers back then? i know they got a loan in exchange for equity, and paid back ~10% of the losses---this was 4-5 years ago. after that, i stopped keeping track.

[gentlemand]

so BTER never paid customers back then? i know they got a loan in exchange for equity, and paid back ~10% of the losses---this was 4-5 years ago. after that, i stopped keeping track.

I think they paid back a dribble and then lost interest and relaunched. There was a thread on here somewhere reporting about payouts drying up and then like magic gate.io popped up. I may be wrong.