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Gate.io's Handling of Assets involved in Judicial Cases (including the Upbit Case)

2020-01-20 23:35:55Read:62246

Recently, Gate.io has received requests for investigation of two judicial cases from two different countries. One request was from the police in Jiangsu Province, China, concerning user funds related to illegal and criminal activities. The other was from the Korean police concerning a user's deposit address involving the Upbit exchange hack that happened on November 27, 2019, when 342000 ETH was stolen.

With the certification the user provided and after repeated communication with law enforcement, Gate.io unfroze the funds for the user with consent of the judicial parties. In the Upbit case, Gate.io has passed on the law enforcement contact information to the user with the consent of law enforcement in question and is actively aiding the communication between the user and the Korean police.

Following the confidentiality requirements associated with the police investigation and the assessments of our legal team, we hereby report the updates on both cases.

1. Updates on the judicial case in Jiangsu, China

Gate.io Legal team confirmed having received the investigation document from Jiangsu Police regarding a suspect account with funds that involved illegal and criminal activities.

Gate.io cooperated with the corresponding judicial department and froze the user's account; as requested, the frozen asset was under Gate.io's supervision.

Due to the confidentiality request, Gate.io was unable to provide the police's contact information to the user and actively aided communication between the user and the police to address the issue. Upon confirmation of the user's certified information and according to the police agreement, Gate.io has dismissed the account risks and unfrozen the assets.

However, a blogger on Weibo, without knowing or acknowledging the truth, posted false accusations such as "funds worth 6 million yuan not able to be withdrawn, Gate.io is running away". Meanwhile, the blogger lured users to repost the false information and posted articles with such accusations in other blockchain media. These attempts at slander have tried to defame Gate.io, whilst simultaneously seeking to impact our reputation negatively. After direct communication, the blogger involved has issued an apologetic statement.terduo.com has also deleted the corresponding article after verifying the truth of the case; we sincerely appreciate their rectification.

2. Updates on the Upbit Case

On November 27, 2019, 342,000 ETH was stolen from Upbit Crypto Exchange. The South Korean police have traced some of the funds to a user's deposit address on our platform and launched a judicial investigation against the user. As required by the corresponding law, Gate.io complied with local laws and co-operated with the police in dealing with transnational crime. Gate.io communicated with both the police and the user. After the consent of involved law enforcement, we provided the contact information of the police to the user, and we actively followed instructions and cooperated throughout the entire process. We learned that the user's funds were mixed with stolen funds from OTC trading, and we have been communicating with the Korean police to help address the issue as soon as possible. Gate.io has added Upbit stolen Fund tracing detection feature to stop the stolen funds from entering the platform.

We hereby remind all our users: please be cautious during OTC transactions, and do not involve yourself in trades with prices significantly lower than the market price. If your transactions, for some unfortunate reason, have become involved in judicial cases, please provide the certification and proof accordingly; we will always assist users in communication and handling of the cases according to the different corresponding regions. Gate.io is a global cryptocurrency exchange that complies with local laws and regulations and cooperates with judicial departments on investigations. Please remain calm and patient if you have become involved in similar cases. In the unfortunate case, you have become involved, here are some suggestions on how to handle during such a situation.

1. When purchasing cryptocurrencies, please choose assets from reliable sources or place orders in an exchange, to avoid inflow of illegal funds and unnecessary time and capital loss.

2. Once your assets have been frozen for potential legal reasons, please remain calm and contact us in order to provide corresponding documents such as - let's say - an income certificate.

3. Please contact Gate.io service staff immediately and cooperate with investigations of law enforcement. Once the investigation has concluded, we will unfreeze your account immediately.

Gate.io was founded in 2013 and has been in operation for nearly 7 years. Our technology and service have earned us many loyal users over the years. We sincerely appreciate all your continued support! With the accumulating trust of each user, we will continue to harness the responsibility of being the backbone and pioneer of the industry, continually developing and growing healthily and steadily together amongst other crypto companies. Gate.io has always insisted on being a transparent, secure exchange. Users are always welcome to provide suggestions in any shape or form.

We look forward to the next 7-year-journey with you!

Gate.io values users' feedback, and we always put the user experience first. The blockchain industry is still at a very early stage. We believe regulations are a progressive force to help the sector further develop. Therefore, Gate.io has set up legal funds and teams to provide global legal aids and technical support when users' assets have been stolen or are subjected to scams. We have also hired top-notch legal counsels from around the world to provide legal guidance for GateChain. In the future, Gate.io will continue to respect the laws and regulations of different countries and regions. We will take any legal aspects of planning our products and business models into an even more defined consideration, in order to provide more comprehensive and considerate guidance for users in the future.


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