Key takeaways:




Gate.io faced insolvency allegations due to its alleged association with the cross-chain router protocol Multichain (MULTI).





These rumours have been refuted by Gate.io, with claims  that “operations are running healthily.”




Gate.io , a crypto exchange platform, has refuted rumors of liquidity issues following an investigation by the police. The platform experienced an outflow of $150 million in the past 24 hours, approximately 10% of its net reserve assets. Speculation on Twitter had suggested that Gate.io was facing insolvency due to its association with the cross-chain router protocol, Multichain (MULTI).



 However, the exchange clarified that its operations were running smoothly and emphasized its efforts to establish a related trading platform in Hong Kong , known as Gate.HK.



According to Arkham Intelligence, a separate blockchain project called Multichain transferred $3 million worth of the MULTI token to Gate.io. Arkham also reported other transactions involving Multichain-related tokens, some of which were subsequently halted for deposit on the popular exchange Binance .



Deposits for a number of bridging tokens that used the Multichain protocol were suspended by Binance on May 25. These tokens included bridged versions of Polkastarter (POLS), Alpaca Finance (ALPACA), and Fantom (FTM). While waiting for clarification from Multichain, Binance reported certain tokens were experiencing delayed transactions and temporarily froze deposits.




Following rumours of the @MultichainOrg team being allegedly arrested in Shanghai, some large holders of $MULTI have began moving funds. Team wallets moving ~$3M of $MULTI to https://t.co/5ecSG3rKek have also spooked some investors, with $MULTI price falling 26.5% in 24h. pic.twitter.com/p2sQpu9Ass — Arkham (@ArkhamIntel) May 24, 2023





[