• May 21, 2024

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Users Withdraw $800M from KuCoin

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On-chain data shows that KuCoin experienced a significant net outflow of more than $780 million over the past 24 hours as a result of charges filed by the US Department of Justice on Tuesday.

According to crypto analytics firm Nansen, this outflow was spread across various networks, with a total outflow of $882 million and an inflow of $99 million, resulting in a net outflow of $783 million.

The data covers transactions on Ethereum, BNB Chain, Avalanche, Fantom, and Polygon chains. The recent indictment against KuCoin and two of its founders, accusing them of violating anti-money laundering laws, may have played a role in the significant outflow from the exchange.

The Commodity Futures Trading Commission also stated in the same complaint that cryptocurrencies such as ether are considered commodities. Nansen’s Content and Communications Lead, Martin Lee, commented that it comes as no surprise that there has been a surge in outflows in response to regulatory action.

However, as long as the exchange has been accurately holding customer funds, it should remain solvent even in challenging situations.