KuCoin, a prominent crypto exchange, recently witnessed a significant surge in withdrawal requests after the US authorities leveled criminal charges against the platform. Various on-chain analytics firms documented a surge in withdrawals across different categories of traders, including whales, funds, smart money, and market makers.
Withdrawal Details and Amounts
Data from SpotOnChain reported withdrawals totaling approximately $500 million, encompassing various tokens like USDT, ETH, ONDO, and FET. Additionally, the 0xscope dashboard placed total net outflows from KuCoin at $520 million during the reporting period. LookonChain also identified two whale accounts moving $86 million USDT to other platforms like OKX and Bybit.
Amidst the increased withdrawals, several users experienced delays, raising concerns similar to the FTX collapse. However, CryptoQuant CEO Ki Young Ju assured that KuCoin had ample reserves to process withdrawals and does not commingle customers’ funds.
DefiLlama’s CEX transparency dashboard indicated that KuCoin still holds assets worth $3.68 billion. CEO Johnny Lyu described the legal challenges as typical growth and regulatory issues faced by emerging industries. He emphasized the importance of regulatory compliance and standardization as the industry evolves.
Proactive Compliance Approach
Lyu highlighted KuCoin’s recent registration as the first global exchange in India as a testament to their commitment to local regulations and proactive compliance. He reassured users that the exchange was operating as usual and that their legal team was investigating the allegations in detail.
The surge in withdrawals following the US authorities’ charges against KuCoin underscores the challenges faced by crypto exchanges in navigating regulatory environments. Despite the setbacks, KuCoin remains resilient and committed to compliance and transparency in the evolving crypto landscape.