Hassan Maishera
TL;DR
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Withdrawals on KuCoin topped $1 billion since the US government filed a lawsuit against the cryptocurrency exchange.
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KuCoin maintains that it is operating well and user assets remain safe.
KuCoin Records Mass Exodus of Funds
Crypto exchange KuCoin saw about $1 billion in crypto withdrawals over the last 48 hours. This is according to data obtained from Nansen.
Arkham Intelligence also revealed that the cryptocurrency exchange’s assets under management (AUM) slumped 20% after KuCoin faced charges from U.S. authorities.
According to Nansen, KuCoin recorded $1.083 billion in outflows via Ethereum Virtual Machine-compatible (EVM) chains in the last two days. Furthermore, the exchange only recorded $144 million of inflows. The data provided by Nansen didn’t include bitcoin (BTC) withdrawals.
An update on @kucoincom withdrawals
— Nansen 🧭 (@nansen_ai) March 27, 2024
At the time of writing, over the past 24 hours, there has been an outflow of over $842m on Ethereum and $938m on EVM chains from an initial $6b base in holdings
This is more than a 15% drop in assets held by the exchange pic.twitter.com/Gy8gPMLROp
Blockchain data from Arkham Intelligence also revealed that the amount of crypto assets (including BTC) held by LuCoin addresses dipped to $4.8 billion from $6 billion on Tuesday.
The withdrawal surge can be attributed to the crypto exchange’s regulatory trouble. On Tuesday, KuCoin and its founders have been charged by the Department of Justice and the CFTC for violating anti-money laundering laws in the United States.
The Commodity Futures Trading Commission also filed a suit against KuCoin. According to the CFTC, KuCoin failed to register as a futures commission merchant, swap execution facility or designated contract market despite offering both spot and futures trading services in the United States
Despite the ongoing challenges, KuCoin informed its users that its platform is operating as usual and their funds are safe.
#KuCoin is operating well, and the assets of our users are absolutely safe. We are aware of the related reports and are currently investigating the details through our lawyers. KuCoin respect the laws and regulations of various countries and strictly adheres to compliance…
— KuCoin (@kucoincom) March 26, 2024
