Kevin Lee Addresses $LA Futures Incident, Emphasizes Transparency, User Protection, and Systemic Changes to Prevent Recurrence

On June 5, Kevin Lee, Gate CBO, shared the details on the $LA incident. Gate, alongside Kevin Lee, also shared the root cause of the LAUSDT perpetual futures incident. The company assures the community of transparency and responsibility. The event, which unfolded on the evening of June 4, saw unexpected volatility in the $LA/USDT futures contract. Within minutes, Kevin launched investigations, paused trading, and announced compensation. The firm has promised further safeguards in response. The detailed statement from Kevin outlines the timeline, clarifies misconceptions, and commits to improvements. The platform is reinforcing its position as a transparent player in the crypto derivatives space.

CBO Kevin Addresses the $LA Incident with Clarity

Kevin Lee said on X that his team worked overnight to investigate and address user concerns. According to him, the sharp price fluctuation originated from an abnormal price feed used in the contract index. This data irregularity caused internal pricing errors and triggered a cascading effect in the futures market. Kevin stressed that no internal manipulation or targeted liquidation occurred. He confirmed that the issue was purely a result of index data anomalies and automated system responses.

Within 15 minutes of detecting the anomaly, Gate executed immediate actions. These included delisting the $LA/USDT contract, issuing real-time user alerts, activating emergency protocols, and unlocking user accounts. All users impacted by forced liquidation have been fully compensated. The platform also ensured that no user account suffered a negative balance.

Emergency Response: Swift Action and User Protection

Gate team responded rapidly after spotting the $LA incident. The platform’s emergency team froze the affected contract to stop further losses. The company deployed risk controls and started a full internal review. Users were notified instantly via app, website, and social channels. After verification, accounts with risk flags are gradually unlocked. The system restored accurate pricing data and settled all user positions. The total compensation exceeded 30 million USDT. Honoured the profitable trades and reimbursed the liquidity losses. This transparent response reflects Gate’s commitment to platform stability and user protection, even in volatile situations.

Clarifications to Community Concerns About the $LA Incident

Gate also addressed key rumours surrounding the $LA incident. Claims about data tampering were firmly denied. The platform maintained that all pricing issues stemmed from index source errors. No profitable trades were cancelled. All earned profits remained with 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 the team resolved them promptly. Users who are still experiencing any issues are advised to contact our customer support team for immediate assistance. Kevin emphasized that the platform acted with integrity. He stated that market trust remains a priority.

Future Steps: Risk Protocol Upgrades and Index Source Reviews

To avoid repeat incidents, Gate will revise its contract design framework. The platform will increase index source vetting, focusing on data accuracy and source liquidity. Automated checks will also become stricter. The company will also refine emergency protocols to reduce user impact from pricing errors. These changes aim to improve futures contract safety and restore full community confidence. Kevin affirmed that safeguarding users and maintaining market fairness is central to Gate’s mission.

Strengthening Trust After the $LA Incident

The $LA incident marked 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. This incident serves as a reminder of 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. On June 5, Cas Abbé, Web3 Growth Manager at Binance, praised Gate for its swift and transparent response to unexpected market volatility. He highlighted how the team avoided silence or blame, instead offering clarity and real compensation, something rare in the crypto space.