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KuCoin deemed ‘fine’ by analyst, despite criminal allegations
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2024-03-27 03:03:03
Ciaran Lyons2 hours agoKuCoin deemed ‘fine’ by analyst, despite criminal allegationsDespite legal action against KuCoin’s founders and a drastic uptick in withdrawals from the exchange, CryptoQuant CEO Ki Young Ju claims there’s no reason to be overly concerned.1609 Total views3 Total sharesListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe Seychelles-based crypto exchange KuCoin has been declared “fine” by Ki Young Ju, founder and CEO of crypto analytics service CryptoQuant, despite criminal allegations and mounting concerns over its reserves among its users.
“BTC and ETH withdrawals surged, driven mainly by retail users, with a small impact on the overall reserve,” Ju stated in a post on X.
“They appear to not commingle customers’ funds and have sufficient reserves to process user withdrawals,” Ju stated, claiming that from an on-chain perspective, the exchange appears to be “fine.”Cryptocurrency exchange KuCoin reserves. Source: Ki Young Ju on X
KuCoin’s total portfolio balance across multiple chains stands at $4.889 billion, according to Scopescan data.
On March 26, the United States Department of Justice alleged that KuCoin founders Chun Gan and Ke Tang had willfully failed to maintain an Anti-Money Laundering program at the exchange and claimed the platform was being used for “money laundering and terrorist financing.”
Ju contrasted KuCoin’s reserves with those of the now-defunct crypto exchange FTX, noting that KuCoin appears to have not mixed customer funds with its own reserves.Cryptocurrency exchange FTX reserves. Source: Ki Young Ju on X
Crypto investors typically withdraw their funds from crypto exchanges when they become aware of legal concerns or issues with an exchange’s reserve status.
Users rushed to withdraw billions of dollars of funds from FTX, when the former CEO of Binance, Changpeng “CZ” Zhao, tweeted that Binance would be disposing of all their entire holdings of FTX’s native FTT token.
Related:Bitcoin miner reserves held steady in February, despite $40B flows to exchanges
Concerns with KuCoin’s or another large exchange’s reserves are not limited to its users alone, as these worries can often snowball into a wider market exodus. When news of FTX’s collapse emerged, the price of Bitcoin fell more than 20% within the week.
Yet despite legal action against KuCoin’s founders, the market doesn’t appear to be overly concerned by the news, with the Crypto Fear & Greed Index still indicating an extreme level of greed, currently at a score of 83.Crypto Fear & Greed Index. Source: Alternative.me
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