Gate.io’s Epic Game of Hide and Seek with Chilean Courts: You Won’t Believe What Happens Next!

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Local Traders are convinced that Gate.io is hosting a masterclass in the art of ignoring four court orders demanding the return of 379.2 BNB, stolen in what can only be described as the Great Hack of 2023. This little drama unfolded so dramatically that even Apple decided to take their app out for a stroll in the Chilean wilderness.

In a tale that stretches longer than a particularly tedious summer vacation, a Chilean crypto company has publicly accused Gate.io of playing fast and loose with four criminal court orders demanding those funds back. All this commotion started three years ago when a smart contract met an unfortunate fate.

Local Traders, who operate under the enigmatic $LCT token, decided to take to X (not to be confused with the letter X, which is far less dramatic) and posted an elaborate thread that could make even the dullest accountant weep with excitement. According to their account, a whopping 379.2 BNB was unceremoniously siphoned off in a hack back in 2023. Naturally, they rushed to file a complaint with Chile’s PDI Cybercrime headquarters faster than you can say “blockchain.”

Those naughty stolen assets took a little detour through Tornado Cash, presumably on a scenic route. The esteemed blockchain forensics firm TRM Labs then traced the funds like bloodhounds following a particularly fragrant scent, all the way to Gate.io, proving once again that blockchain is about as private as a town square.

Gate Provided KYC, Then Asked for More

The Chilean PDI Cybercrime team, armed with electronic magnifying glasses, contacted Gate.io directly. According to the second post in the riveting thread, Gate did provide KYC details of the account holder-identified as a Chinese citizen-then promptly asked for a formal criminal court seizure order before they’d lift a finger. Because why not make everyone jump through hoops while the circus music plays?

The case was sent up the legal ladder to Chile’s Public Prosecutor, who presented it to the 8th Juzgado de Garantia, securing a seizure order on November 18, 2024. Gate, ever so cooperative, agreed to freeze the assets. But when it came time to return them, they had a sudden case of selective hearing, demanding more paperwork than would be required to launch a small rocket.

The restitution order finally arrived on February 27, 2025. And then… crickets. Not the chirping kind but the deafening silence of a thousand unanswered emails.

Post four of the thread states that Gate began ignoring the requests entirely. No response, no compliance. Months turned into epochs. On April 28, 2025, Chile’s Public Prosecutor issued a formal five-day warning to comply. Gate responded with their best impression of a brick wall. On May 8, 2025, the court reiterated its order directly, only to find that Gate had developed a remarkable talent for evasion.

Four court orders. Zero compliance. It’s like trying to get your cat to come inside at dusk-good luck with that.

1,000 Emails, Complete Silence

Local Traders reported sending over 1,000 emails, more than 500 direct messages, and filing another 1,000 support tickets across Gate’s various support channels. As detailed in post six, Gate’s support team initially said they were looking into the matter-which translates to “we’ll ignore you” in corporate speak-before going completely dark. Maybe they thought the sun had set on this saga.

Efforts even extended to LinkedIn, where Gate’s chief marketing officer, Kevin Lee, decided to play a game of social media hide-and-seek by blocking Local Traders after previously claiming the matter was being reviewed. Quite the plot twist!

The Gate.io exchange has faced scrutiny from various platforms before, but this current tangle involves criminal court orders issued by a national judiciary-not your run-of-the-mill platform-level dispute over who borrowed whose stapler.

Lithuania Blocked Every Path

With no physical presence in Chile, Local Traders directed their attention to Gate’s registered entity in Lithuania: Gate Global UAB. A local legal team was summoned, and a petition for recognition of the Chilean court orders was filed before the Lithuanian Court of Appeal. Sounds simple enough, right? Spoiler alert: it wasn’t.

As described in post eight, the Lithuanian court rejected the petition twice. First, because a certificate confirming the Chilean orders were final went missing-like a sock in the dryer. Second, because Chile and Lithuania apparently aren’t on speaking terms regarding recognizing criminal court judgments. Thousands of dollars spent on apostille fees, translations, and international postage just to be told “no thanks.”

A criminal complaint was also filed against Gate’s CEO Han Lin with Lithuania’s Public Prosecutor. Post nine lays out the rejection chain, culminating on November 3, 2025, when Lithuania’s Supreme Court declared that no further appeals were possible. It’s a bit like being told you’ve reached the end of the rainbow and there’s no pot of gold, just a really disappointed leprechaun.

This entire episode fits snugly within a broader pattern of compliance failures related to crypto hacks across the industry, where stolen funds trace back to exchanges, yet enforcement remains as elusive as a decent cup of coffee at a conference.

Apple Acted. Most Didn’t.

Local Traders decided to escalate matters by filing reports with Apple, Google Play, Amazon Web Services, Sumsub, Fireblocks, and BitGo. As stated in post ten, Apple reviewed the evidence and suspended Gate’s application from the Chilean App Store. Google Play is still investigating, presumably using a magnifying glass and a thesaurus for “pending.” Sumsub, Fireblocks, and BitGo took no action, possibly because they were busy binge-watching their favorite shows instead. ICANN is also investigating, just for kicks, under case number 01564436.

Gate’s first communication with Local Traders was not a heartfelt apology or an offer to return funds. Instead, they sent a formal Cease and Desist letter demanding Local Traders stop reporting them to Apple, Google, regulators, and the public-because nothing says “let’s resolve this amicably” like a legal threat, right?

Post eleven describes Gate CEO Han Lin and marketing executive Kevin Lee celebrating Gate’s 13th anniversary with Red Bull Racing while the court orders remained as enforceable as a wish upon a shooting star. Meanwhile, Gate’s support account posted a generic apology on X, asking Local Traders to send a DM for help-because that’s exactly how you fix a legal mess.

Local Traders responded publicly, as documented in post fourteen, noting over 300 emails sent over three years with no reply in the last eighteen months, that Gate’s own Chilean lawyers had been served every document, and that a DM would not magically resolve four unenforced court orders. It’s like trying to fix a flat tire with a band-aid.

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2026-04-23 19:19