Gate forms recovery team after users allege $1.7 million in asset outflows

Gate said it is changing its response to user complaints tied to alleged asset outflows totaling about $1.7 million, setting up a specialized team to help trace, freeze and recover funds. The exchange said its early communication with an affected user was inappropriate, but defended its initial judgment by citing highly matching account data, passed liveness verification, matching regional IPs, a two-day review and a 24-hour withdrawal protection period during which it said no objection was raised. DeFiLlama data showed Gate recorded a $207 million net outflow over the past seven days after the user asset theft incident, the second-largest outflow among centralized exchanges. Binance posted a $308 million net inflow over the same period, although over the past month both Binance and Bybit saw major outflows linked to EU delisting policies. Gate said it has helped the user file a police case, engaged lawyers, and is coordinating with Tether and related exchanges to try to freeze the funds, while maintaining that its own systems were not breached and that it found no evidence of a platform data leak or misconduct by former employees.