KuCoin Sees $1 Billion Crypto Exodus And 20% Asset Fall Amid US Charges

KuCoin saw $1 billion in cryptocurrency withdrawals in just 24 hours, alongside a drop of 20% in funds under management, after charges were imposed on the platform by US authorities. Data insights from Arkham Intelligence and Nansen have disclosed the level of the withdrawal upsurge and the subsequent reduction of assets.

The report revealed that KuCoin faced an unusual outflow of about $1.083 billion in Ethereum Virtual Machine-enabled chains, Exceeding the scanty inflows of $144 million in the same interval. Remarkably, cash outflows on the Ethereum blockchain reached $840 million, according to Nansen.

KuCoin Reassured Users Of Platform Stability And The Safety Of Their Assets

Data from Arkham Intelligence’s blockchain confirmed the significant drop in digital assets in KuCoin-associated addresses, plunging from $6 billion to $4.8 billion in just a day. Regardless of Possible price changes, the decline mainly comes from users taking out their assets from the platform due to the evolving legal issues.

The increase in withdrawals aligned with US federal prosecutors accusing KuCoin and both of its founders of breaking anti-money laundering rules. A Homeland Security Special Agent labeled the exchange as a “purported multibillion-dollar criminal scheme,” worsening concerns among investors.

While several users stated that there were delays in processing withdrawals, blockchain data disclosed that withdrawals from KuCoin were finally completed. These delays may be caused by the large number of withdrawal requests accrued during the turbulent period.

Responding to the rising worries among users, KuCoin reassured them that the platform is stable and their assets are safe. The exchange highlighted that it is functioning properly despite the difficult circumstances.

Users On KuCoin Can Also Lend Or Stake Their Digital Currencies To Earn Rewards

KuCoin is a top cryptocurrency exchange providing users the ability to trade, sell, and buy cryptocurrencies. Aside from standard trading selections, the platform also provides peer-to-peer (P2P), futures, and margin trading. Users have the option to lend or stake their digital currencies to earn rewards. In comparison to certain competitors, KuCoin provides low trading charges, making it a desirable option.

The platform was introduced in 1017, with its headquarters located in Seychelles. Since its inception, it has developed to become one of the top exchanges in the world in terms of trading volume. It now boasts more than 30 million users and has expanded its footprints in over 200 countries.

Even though users in the US can open a KuCoin account, their access to features is restricted because KuCoin is not authorized to operate in the US. Due to this, creating an account could cause serious problems. For example, if US regulators choose to take action against KuCoin, users may not be able to take out their assets.