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 leveled against the platform.
The platform saw about $500m in assets withdrawn from the Ethereum blockchain alone, according to BeinCrypto.
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. The asset base of the exchange is still strong at more than $4.02 billion, though.
“KuCoin’s growth to over 30 million customers came despite its alleged legal non-compliance,” McCormack stated.
In response, the CEO of KuCoin, Johnny Lyu, pointed out 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.
Furthermore, KuCoin’s CEO reassured the Exchange users of operational continuity and dedication to user asset security.
KuCoin is currently under indictment in the United States, accusing it of failing to do enough work on preventing money laundering and customer identity verification. These gaps made Kucoin an accomplice contributing to over $9 billion of suspect transactions.
