Withdrawal Frenzy on KuCoin: Users Pull Out Over $1.2 Billion Amid US Charges

KuCoin, a leading cryptocurrency exchange, is currently facing a tumultuous period. Following a US government criminal complaint, the platform saw about $500 million in assets withdrawn on the Ethereum blockchain alone.

Data from SpotOnChain highlights 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.

KuCoin Withdrawals Continue as CEO Speaks Out

Moreover, 0xscope indicates that KuCoin experienced a net outflow of roughly $1.195 billion over the last 24 hours. Yet, the exchange’s asset base remains strong at $4.02 billion, exchange tokens included.

In a startling development, WuBlockchain disclosed that KuCoin had considered shutting down and selling off in 2023. This comes after a US-led criminal investigation and several inquiries in China. Additionally, the US indictment points to KuCoin’s alleged shortcomings in anti-money laundering efforts and customer identity verification. These gaps reportedly positioned KuCoin as a conduit for illicit funds, contributing to over $9 billion in suspect transactions.

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HSI Acting Special Agent in Charge Darren McCormack remarked on the situation, highlighting the exchange’s rapid expansion at the potential cost 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 has emphasized the common regulatory challenges faced by burgeoning industries. The exchange underlined its commitment to compliance, citing its recent successful registration with India’s FIU as a positive step. KuCoin reassured its community and partners of its dedication to operational normalcy and user asset security.

“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.

Through these statements, KuCoin aims to navigate its legal and regulatory challenges. The exchange seeks to reassure stakeholders of its commitment to compliance and transparent communication amidst these turbulent times.

The post Withdrawal Frenzy on KuCoin: Users Pull Out Over $1.2 Billion Amid US Charges appeared first on BeInCrypto.