Gate.io LA Contract Price Abnormalities, Official States Data and Risk Control Combined Effects, Quickly Delisted and Announced Full Compensation for Users, Amounting to Over 30 Million USDT.
(Background: Binance’s delisting announcement became a “positive” news for the token, $ALPACA soared 650% against the trend, squeezing shorts)
(Supplementary Background: $VOXEL contract abnormal transactions “Users madly profiting”, Bitget announced: Account suspensions due to risk control will be lifted within 24 hours)
The LA contract trading pair on the exchange Gate.io recently experienced drastic price fluctuations, quickly attracting market attention.
Kevin Lee, the Chief Business Officer (CBO) of Gate.io, responded, explaining that the core reason for this volatility was due to the “abnormal data from the contract index source” and the platform’s “risk control automatic mechanism combined effects,” and clearly denied any internal manipulation or deliberate triggering of “single-point liquidation.”
Response to the $LA Incident
Last night, my team and I were on-site handling the situation in the community and with users, and now I would like to detail the process. First, we sincerely apologize for the confusion caused by the volatility of the LA/USDT contract.
Incident Overview
On the night of June 4, we monitored that $LA…
— Kevin Lee (@kevinlee_gate) June 5, 2025
Compensation Plan
Gate.io Kevin further explained the compensation mechanism, stating that all users who experienced “liquidation” in this contract market will be fully compensated. Details are as follows:
We have allowed all users to retain their profits while covering 100% of the losses of all liquidated users, ensuring that no user account goes into a negative balance, with the total amount exceeding 30 million USDT. We believe this is not only a responsibility but also a fundamental commitment to the community.
To ensure that similar situations do not occur again, we will also upgrade our subsequent preventive mechanisms on the product, conducting stricter reviews of the qualifications of the contract index sources, including liquidity and other factors.
