Gate Compensates Users 30 Million USDT After $LA Futures Volatility

On June 5, Kevin Lee, the Chief Business Officer of Gate, provided a detailed account of the $LA incident that occurred the previous evening. The incident involved unexpected volatility in the $LA/USDT futures contract, prompting immediate action from the company. Kevin Lee and the Gate team worked diligently overnight to address user concerns and investigate the root cause of the issue. The sharp price fluctuation was attributed to an abnormal price feed used in the contract index, which led to internal pricing errors and triggered a cascading effect in the futures market. Kevin Lee emphasized that there was no internal manipulation or targeted liquidation involved, and the issue was purely a result of index data anomalies and automated system responses.

Within 15 minutes of detecting the anomaly, Gate took swift action to mitigate the impact. The $LA/USDT contract was delisted, real-time user alerts were issued, emergency protocols were activated, and user accounts were unlocked. All users affected by forced liquidation were fully compensated, and the platform ensured that no user account suffered a negative balance. The total compensation exceeded 30 million USDT, honoring profitable trades and reimbursing liquidity losses. This transparent response underscored Gate’s commitment to platform stability and user protection, even in volatile situations.

Gate also addressed several rumors surrounding the $LA incident. The platform denied claims of data tampering, asserting that all pricing issues were due to index source errors. No profitable trades were canceled, and all earned profits remained with the users. The platform closed positions only during the emergency liquidation to stabilize the market and prevent further disruption. The risk control system had triggered some withdrawal issues, but these were resolved promptly. Users experiencing any issues were advised to contact customer support for immediate assistance. Kevin Lee emphasized that the platform acted with integrity and that market trust remains a priority.

To prevent similar incidents in the future, Gate plans to revise its contract design framework. The platform will increase index source vetting, focusing on data accuracy and source liquidity. Automated checks will become stricter, and emergency protocols will be refined to reduce user impact from pricing errors. These changes aim to improve the safety of futures contracts and restore full community confidence. Kevin Lee affirmed that safeguarding users and maintaining market fairness is central to Gate’s mission.

The $LA incident served as a critical test for Gate’s crisis response and user-first policy. Swift compensation, proactive communication, and public accountability helped the platform control the damage. With new safety protocols and stricter source validation, Gate is preparing for a more resilient future. Kevin Lee’s clear and immediate response has resonated well with users, reinforcing the importance of reliable index sources and real-time transparency in crypto futures trading. Gate now focuses on long-term trust, aiming to remain a transparent and responsive player in the global digital asset ecosystem.