KuCoin, a leading cryptocurrency exchange has witnessed the withdrawal of over $1.2bn from its platform over the last 24 hours following a withdrawal frenzy by users caused by fresh US Charges levelled against the platform.
According to BeinCrypto, the platform saw about $500m in assets withdrawn from the Ethereum blockchain alone.
- Data from SpotOnChain reflects significant withdrawals including 274 million USDT and 15,500 ETH, from KuCoin’s Ethereum holdings in recent hours. Despite this, the exchange’s Ethereum hot wallets still contain over $3.6 billion in assets.
- Oxscope a Web 3 Ai data platform suggests that Kucoin experienced an outflow of roughly $1.195 billion over the last 24 hours. However, the exchange’s asset base remains strong at over $4.02 billion.
- HSI criminal investigators led by Special Agent Darren McCormack remarked on the ongoing US charges leveled on KuCoin stating its massive expansion at the expense of legal adherence.
- “KuCoin’s growth to over 30 million customers came despite its alleged legal non-compliance,” McCormack stated.
In Response, KuCoin CEO Johnny Lyu emphasized the common regulatory challenges faced by Crypto startups citing KuCoin’s latest enrolment with India’s FIU as the effort his exchange is making to meet regulatory requirements and eschew legal compliance.
- “As the People’s Exchange, we prioritize user asset security above all else. All operations, including deposits and withdrawals, are normal. I want to thank everyone in the community and our partners for your support. I’ll keep my X open and keep you all posted regularly,” Lyu added.
- In addition, KuCoin CEO also assured his Exchange users of operational normalcy and a dedication to User asset security.
Recommended reading: United States SEC requests $2.6bn to crackdown on Crypto
What to Know
- KuCoin is currently facing a US indictment that points to KuCoin’s alleged shortcomings in anti-money laundering efforts and customer identity verification. These gaps made Kucoin an accomplice contributing to over $9 billion of suspect transactions.
- KuCoin with over 30 million customers is one of the largest crypto exchanges.
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