Gate’s CBO Kevin Lee addressed the recent LAUSDT perpetual contract disruption on the X platform, attributing the issue to a sudden, intense market price fluctuation. The platform promptly implemented risk mitigation measures, including a trade suspension, user notifications, and emergency controls, all executed within 15 minutes to stabilize trading conditions.
In his statement, Lee confirmed that all profitable trades were honored, and users affected by liquidation losses will receive full compensation exceeding 30 million USDT. This move underscores Gate’s commitment to safeguarding user assets and maintaining trust within the crypto trading community.
Kevin Lee also dispelled rumors of internal errors or manipulative practices, affirming that no single-point or intentional liquidations occurred. Moving forward, Gate is enhancing its risk management protocols and tightening contract index qualifications to ensure greater market stability and protect investor interests.