Gate.io is one of the most popular cryptocurrency exchanges. They have denied recent rumors regarding a possible hacking incident. Social media speculations about a hacking incident began earlier in December, based on significant withdrawals that were observed on the platform.
Gate.io responded with a series reassurances. It stressed that the platform’s operations were unaffected, and that it maintains a reserve fund of more than $10 billion. Gate.io clarified the withdrawals were not related to security breaches and that they were normal.
In a post on X the security team of the exchange confirmed that there were no anomalies in deposit, withdrawal, or trading activity and urged its users to not believe unfounded rumors.
Gate.io Hack: Rumor Or Covered Loss?
Social media posts including X, Telegram and others speculated about a possible hack due to a spike in Gate.io withdrawal activity.
Observers have pointed out Arkham Intelligence data that highlights large fund movements.
These occurrences, which can sometimes be attributed to mislabeling or wallet rotations by analytics platforms are causing concern in the crypto community.
Kevin Lee, Gate.io’s CTO for , assured users by stating:
“Deposits and withdrawals are working normally. Do not listen to rumors. Gate.io’s reserves are more than 100%, and the most recent reserves exceed $10 billion. It’s just business as usual .”
He announced a live speech on X in order to clear up any doubts that remained and to reaffirm X’s commitment towards transparency and security.
Gate.io’s clarification and the lack of unusual activity on blockchain helped quell fears, preventing significant market disruption. The DefiLlama Data showed minimal asset movements, which suggests that users didn’t panic withdraw funds.
The exchange strongly condemned the spreading of unverified information, even though it maintained that the withdrawals are part of routine operations and possible wallet rotations.
Community Response and Wider Implications
Concerns were raised by posts urging users to remove their assets from Gate.io. The ripple effect has been felt across the industry, as users are more aware of security breaches after high-profile hacks.
A report from just this month claimed that Japanese cryptocurrency DMM Bitcoin has ceased operations after a loss of $320 million in Bitcoin due to a hacking attack on a private key in May.
The company is still struggling to recover from the breach, despite promises to protect customer assets.
The hack was one of the largest in Japan since the Coincheck hack of 2018. It was linked to Lazarus from North Korea, a cybercriminal group known for laundering stolen funds on shady platforms.
Recent reports confirmed that Radiant Capital’s $50 million hack on its decentralized finance platform (DeFi) was also orchestrated by the same North Korean hacker.
Gate.io, in response to the massive market sensitivity, has reaffirmed its commitment to transparency and security in subsequent statements.
The exchange claims to have a reserve policy of 100%, and maintains over $10 billion to protect users’ assets.
Gate.io has also condemned the dissemination of false information and stated that it “strongly” condemns attempts to create panic amongst its users.
