Gate Exchange Addresses $30M LAUSDT Incident with Swift Action
Gate, a leading cryptocurrency exchange, has taken decisive action following a severe pricing anomaly in its LAUSDT perpetual futures contract that resulted in abrupt market swings and significant user impact. The incident occurred on the evening of June 4, 2025, when the price of Lagrange (LA) on the Gate platform spiked from below $1 to nearly $27 before rapidly collapsing, causing widespread forced liquidations and account disruptions.
Immediate Response and User Protection
Within 15 minutes of detecting the abnormal price activity, Gate delisted the LAUSDT contract, suspended all related trading, and activated emergency risk controls to prevent further losses. The exchange promptly issued real-time alerts across its app, website, and social channels to inform users of the situation. All open positions were liquidated at market prices, and Gate assured users that they would not be required to cover negative balance losses.
Compensation and Transparency
Gate has committed to compensating affected users with over $30 million USDT, covering all liquidation losses and ensuring that users retain any profits earned during the incident. Chief Business Officer Kevin Lee emphasized the exchange’s commitment to user trust, categorically denying allegations of internal manipulation or data tampering. Lee explained that the root cause was an abnormal index price feed, not deliberate actions by the platform, and provided evidence to support the exchange’s transparency.
Future Safeguards and Industry Context
In response to the incident, Gate has pledged to strengthen its risk protocols, enhance index source vetting, and implement stricter automated checks to prevent similar occurrences. The exchange’s rapid and transparent handling of the crisis is seen as a significant move to reinforce user confidence and market stability in the volatile crypto sector.
Ongoing User Support
Gate has stated that any users still experiencing issues should contact customer support for immediate assistance. The exchange continues to unlock accounts flagged during the emergency and is working to restore normal operations as quickly as possible.
This event underscores the importance of robust risk management and transparent communication in the fast-evolving cryptocurrency market. Gate’s swift compensation and public accountability have been widely noted as the platform aims to emerge stronger and more resilient from the incident.