Last week witnessed a devastating 20% crash in the price of the Multichain token, triggered by reports of problematic withdrawals. The precise cause of the transaction backlog in the Multichain token remains a mystery, although two theories have emerged.
Initially, it was believed that a poorly executed system update was responsible for the deposits and withdrawals of MULTI getting stuck, causing significant delays. However, rumors began circulating like wildfire, suggesting that the development team had been arrested in Shanghai.
While these speculations are yet to be confirmed, the Multichain team has since acknowledged that their CEO is missing, leaving the developers without the necessary access to conduct server maintenance, which could account for the prolonged downtime.
During this period, an unknown user transferred $2.75 million worth of MULTI to Gate.io, raising concerns about a potential connection between the two platforms.
In the following week, additional assets purportedly belonging to members of the Multichain team were reportedly transferred to Gate.io. Notably, a series of transactions involving approximately $10 million worth of Fantom took place.
As the Multichain team finds itself in a precarious situation, wild accusations have been thrown around, with Gate.io being singled out for allegedly assisting and harboring the Multichain team.
To address these mounting concerns, Gate.io released a statement to Bloomberg, denying any involvement in the matter and clarifying their recent activities. According to Gate.io’s spokesperson, the platform’s employees are primarily focused on preparations for the platform’s upcoming 10th anniversary and handling essential paperwork, particularly obtaining a Virtual Asset Service Provider (VASP) license required for their new Hong Kong-focused trading platform.
The Gate.io spokesperson also took the opportunity to provide a glimpse of upcoming plans for the Gate community, including a series of “user campaigns” to celebrate the platform’s decade-long existence.
Following the controversy, the analytics platform Lookonchain decided to publish an updated report on the assets stored on Gate.io’s platform, aiming to shed light on the situation.
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