Gate.io, a centralized cryptocurrency exchange, has expressed its intention to take legal measures against the spreading of bankruptcy rumors. Speculation has been rampant since May in the cryptocurrency community regarding a possible link between Gate.io and the struggling cross-chain protocol Multichain.
“Those who spread panic amongst investors through mere rumors and gossip without any substantial evidence will face legal action,” was the message conveyed in a June 4th Twitter announcement, originally posted in Turkish.
Multichain Incidents Fueling Insolvency Speculations
The bankruptcy rumors surrounding Gate.io came to light following a chain of events related to Multichain. The cross-chain protocol has been dealing with technical issues since May 24, when a node problem resulted in transaction delays. The Multichain team revealed a few days later that they were unable to reach their CEO to rectify the server issues, intensifying previous rumors about the arrest of the protocol’s leadership and the seizure of over $1.5 billion in smart contract funds by Chinese authorities.