Withdraw your funds from Gate.io

[OmegaStarScream]

So from my understanding, this is the current situation:

- Multichain's (a bridge that helps you transfer funds from one network to another) CEO went missing/got detained[1].
- Some users have noticed an inflow of large amounts of FTM and MULTI (the bridge's token) from Multichain's team wallets to Gate.io.
- There are also rumors that Gate.io is being investigated by the police[2]

Since all of this came to light, the exchange had a 150M $ outflow in a matter of a few hours and I wouldn't be surprised if more people start to panic and withdraw their funds.

If you have any funds there, you should probably withdraw them now, just in case.

[1] https://decrypt.co/142997/multichain-cant-find-its-ceo-as-company-loses-access-to-its-servers/
[2] https://coingape.com/breaking-gate-io-sees-150-million-net-outflow-amid-police-investigation-rumors/

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[Yamane_Keto]

According to CMC https://coinmarketcap.com/exchanges/gate-io/ Gate IO has a Total assets of $1,240,248,607.51 with BTC 30.11%



150 million is not supposed to cause panic, but 27% is from other assets and the factors that I mentioned, so I do not rule out that the matter will develop.
Their exposure to both the FTM and MULTI tokens is about $219,150
This data can be tracked here https://defillama.com/cex/gate-io

Prevention is better than cure. If you have a significant amount, withdraw it immediately and do not keep it in a central exchange.

[Little Mouse]

- Multichain's (a bridge that helps you transfer funds from one network to another) CEO went missing/got detained[1].

There's a rumor that Multichain's CEO has been arrested in Sanghai. I have seen the news in the local Facebook group but didn't check thoroughly.
Anyway, it's news from Arkham and they have been spreading FUD for quite a long time now. A few days ago, there was a rumor that the FBI is selling Bitcoin from Silk Road seizing and I was surprised that it was also published from Arkham, they had done the same last year too if I can remember correctly.

I have little funds in gate.io which I made from shitcoin, seems they are going to be lost if the news is true  

Edit-

There's a rumor that Multichain's CEO has been arrested in Sanghai.

I thought Gate exchange was based in Japan

It's Multichain's CEO, not gate.io's CEO if you have misread in case.

[dkbit98]

Multichain's (a bridge that helps you transfer funds from one network to another) CEO went missing/got detained[1].

I said from the start that all this bridge multichain crap will create more exist scams in the end.
Bunch of people started creating centralized blockchains with worthless vaporware tokens... so it had to end up in a bad way.

There's a rumor that Multichain's CEO has been arrested in Sanghai.

I thought Gate exchange was based in Japan, but they probably changed something in recent years, now it is showing they are registered in Cayman Islands.

They are one of top ten exchanges according to Coingecko website and they have very good trust score rating, so this news could certainly affect whole crypto market.

[bitmover]

Sad to see one more big exchange going bankrupt or the CEO running with money or whatever.

I used Gate.io lots of time to sell bitcoin forks. Or some other shitcoins that I received somehow.

I even checked now my account, zero balance. Never using it again.

[bbc.reporter]

Sad to see one more big exchange going bankrupt or the CEO running with money or whatever.

I used Gate.io lots of time to sell bitcoin forks. Or some other shitcoins that I received somehow.

I even checked now my account, zero balance. Never using it again.

This has nothing to do with bankruptcy or another rugpull, I reckon. However, it might hehe.

In any case, it began when rumors of Multichain's CEO got arrested in China then there was a transfer of Multi token to Gate.io. I assume to dump.

The part that I do not understand is there is another rumor that implies Gate.io might be insolvent because Multichain's treasury is being backed by 30% by Gate.io?



JUST IN:

Due to the CEO Zhaojun arrest and the Multichain treasury being backed by 30%. The Gate io team is having insolvency problems.

STAY SAFU AND WITHDRAW FROM http://GATE.IO.

Source https://twitter.com/coinsumption/status/1663952023027613698

[Yamane_Keto]

Sad to see one more big exchange going bankrupt or the CEO running with money or whatever.

I think you misunderstood, the CEO who escaped is Multichain's CEO not gate.io's CEO and even the platform's possession of FTM and MULTI tokens is about $219,150 and not the amount that will cause the platform to go bankrupt.

Today's report, Total Assets have decreased $1.58b yesterday was about $1.64b

[Coin_trader]

I’m not aware with this issue on Gate.io until I read this thread. They release a statement yesterday denying the insolvency allegations. https://cointelegraph.com/news/gate-io-denies-liquidity-problems-after-multichain-ceo-goes-missing

I’m surprised how this news not spread like a wild fire on social media while this exchange is popular as shitcoin exchange haven since this is the typical target CEX listing of startup crypto projects. I still managed to withdraw some of my funds from translation bounty before.

[Accardo]

I thought Gate exchange was based in Japan, but they probably changed something in recent years, now it is showing they are registered in Cayman Islands.

They are one of top ten exchanges according to Coingecko website and they have very good trust score rating, so this news could certainly affect whole crypto market.

Gateio is hosted offshore but it's a Chinese exchange. It's sad to hear about this issue, I actively used gateio for few months when they ranked 3rd on coinmarketcap. Seeing that their rank dropped back to number 10 shows that they were also affected by the fall of FTX. Most of these exchanges are dependent on other exchanges, now gateio is affected again by the disappearance of the multichain CEO. I think my assets there is not enough to make me bothered and I don't want to stress myself with their login requirements.

[Yamane_Keto]

Where there are bankruptcy rumors, you will find Binance.

On May 25, Binance suspended deposits that depend on the Multichain protocol, which will force users to the best alternative, which is Gate.io, which was noted in the Blockchain data https://etherscan.io/address/0x3a7937851d67ee2f51c959663749093dc87d9c9a#tokentxns, which proves A lot of FTM transfer from an unknown user (may be Binance) to the Gate.io platform Now then we heard rumors that the Gate.io platform might go bankrupt, which is almost a similar scenario to what happened with FTX.

I explained above that high trading volumes prevent any bankruptcy rumors, but it seems that some are still trying to play the same game that happened with FTX.

According to CMC https://coinmarketcap.com/exchanges/gate-io/ Gate IO has a Total assets of $1,240,248,607.51 with BTC 30.11%
150 million is not supposed to cause panic, but 27% is from other assets and the factors that I mentioned, so I do not rule out that the matter will develop.
Their exposure to both the FTM and MULTI tokens is about $219,150
This data can be tracked here https://defillama.com/cex/gate-io

I've connected the dots from the link above https://cointelegraph.com/news/gate-io-denies-liquidity-problems-after-multichain-ceo-goes-missing

[dansus021]

Yeah I would agree with you since it sound fishy I never use Gate.io personally but I do know the exchange because he listed tons of new coins there.

and the other things Gate.io company based on Cayman Island https://coincub.com/exchange/gate-io-review/ according to this website so if everything go wrong maybe not much other countries would care.

[EmpoEX]

Last year Gate.io received a couple of million dollars worth of ETH from Crypto.com
Then Crypto.com claims they are supposed to send it to their cold wallet once exposed to transfer the reserves.
But they send it to gate.io by mistake. Do you believe this?

[Abu-Naim]

Last year Gate.io received a couple of million dollars worth of ETH from Crypto.com
Then Crypto.com claims they are supposed to send it to their cold wallet once exposed to transfer the reserves.
But they send it to gate.io by mistake. Do you believe this?

I won't be surprised if Crypto.com has contacts with the exchange because they back scammers and promote misinformation that causes FUD among Bitcoin enthusiasts. I don't trust centralized exchanges since they are all guilty of wrongdoing in some way but choose to conceal it in order to maintain their reputation.

[joniboini]

But they send it to gate.io by mistake. Do you believe this?

Is this related to the insolvency rumors on Gate? How is it connected? Did Crypto help them alleviate some pressure or something similar? The last news about this rumor is related to the legal threat from Gate for those who spread the insolvency rumor. I've not seen any updates about that unless most of them happened on Twitter. I'd still avoid using Gate even if the rumor was false though.

[Darker45]

Last year Gate.io received a couple of million dollars worth of ETH from Crypto.com
Then Crypto.com claims they are supposed to send it to their cold wallet once exposed to transfer the reserves.
But they send it to gate.io by mistake. Do you believe this?

It wasn't just a couple of million dollars. The mistake wouldn't have exploded had the amount was that small. But the amount was a staggering $400-million at least. A petty mistake that could have cost the exchange hundreds of millions? Something's fishy. And why would Gate.io's address be a whitelist on Crypto.com's withdrawal? Moreover, is it a coincidence that such huge erroneous transaction happened around the time everyone demanded proof of reserves from centralized exchanges like them? So I don't believe what they're saying.

In fairness, however, despite all the challenges and controversies that Gate.io is going through, it hasn't bowed down yet. But we shouldn't be waiting for it to happen before we decide to withdraw all our funds from the platform.

[Yamane_Keto]

Last year Gate.io received a couple of million dollars worth of ETH from Crypto.com
Then Crypto.com claims they are supposed to send it to their cold wallet once exposed to transfer the reserves.
But they send it to gate.io by mistake. Do you believe this?

If we believe these rumors, then the transaction that you mean occurred due to a mistake is this transaction: https://etherscan.io/tx/0xb426efda7525776e856b414c87ec0d7859e9bccafe727c174c7b51ed7ada6bee
The total amount of the transfer was 320,000 ETH, which was equal to about $406 million, given the value of the assets that Gate.io has, and assuming that we will look at Ethereum $883.79m and Bitcoin $418.34m, (Total Assets $1.61b) even if the news was real, it would not have caused the platform to go bankrupt. https://defillama.com/cex/gate-io

Crypto.com has a history of abnormal activities, so these rumors indicate a problem with Crypto.com.

It's not the first time Crypto.com made headlines for an accidental transfer. Back in August 2022, it was found that Crypto.com accidentally sent AUD $10.5 million (worth over $7 million) to Melbourne-based investors, which was supposed to be an AUD $100 ($67) refund. The incident occurred back in May 2021 but was not discovered until an annual audit in December 2021.

https://cointelegraph.com/news/crypto-com-accidentally-sends-320k-eth-to-gate-io-recovers-funds-days-after

All that I mentioned is not in defense of them, but they are not very bad, and you should avoid depositing a lot of money with them.

[EmpoEX]

Last year Gate.io received a couple of million dollars worth of ETH from Crypto.com
Then Crypto.com claims they are supposed to send it to their cold wallet once exposed to transfer the reserves.
But they send it to gate.io by mistake. Do you believe this?

It wasn't just a couple of million dollars. The mistake wouldn't have exploded had the amount was that small. But the amount was a staggering $400-million at least. A petty mistake that could have cost the exchange hundreds of millions? Something's fishy. And why would Gate.io's address be a whitelist on Crypto.com's withdrawal? Moreover, is it a coincidence that such huge erroneous transaction happened around the time everyone demanded proof of reserves from centralized exchanges like them? So I don't believe what they're saying.

In fairness, however, despite all the challenges and controversies that Gate.io is going through, it hasn't bowed down yet. But we shouldn't be waiting for it to happen before we decide to withdraw all our funds from the platform.

I am an exchange guy with three years of working experience in this field. Crypto.com is lying about the transfer. I did not have access to our wallet though I know how exchanges do big transfers. Those wallets are supposed to be a multi-signature wallets. The main person in charge of the wallet is supposed to check the address a couple of times and cross-check where are they sending the funds before they broadcast the transaction. This is not possible to send crypto to the wrong address unless every co-signer is the same person.

I did not follow the recent case of Gate.io though

[joniboini]

I did not follow the recent case of Gate.io though

As far as I can see, the recent one seems to be unrelated to the case you mentioned. Regardless of how Crypto and Gate are connected, only Gate seems to be in the spotlight for the multichain issue. If they do have some connections and both of them are helping each other to ease the rumors of Gate going bankrupt, we will definitely see some large transactions here and there. I guess we can see whether it will happen or not. Should not take that long for people to notice if one of them receives/send a huge amount of coins even if they use a new address to do it. CMIIW.