KuCoin Withdrawals Top $1B Following US Regulatory Crackdown

Twitter icon  •  Published hace 2 meses  •  Hassan Maishera

Cryptocurrency exchange KuCoin saw a net outflow of over $1 billion in the last 48 hours following its regulatory challenges in the United States.

TL;DR

  • Withdrawals on KuCoin topped $1 billion since the US government filed a lawsuit against the cryptocurrency exchange.

  • KuCoin maintains that it is operating well and user assets remain safe.

KuCoin Records Mass Exodus of Funds

Crypto exchange KuCoin saw about $1 billion in crypto withdrawals over the last 48 hours. This is according to data obtained from Nansen. 

Arkham Intelligence also revealed that the cryptocurrency exchange’s assets under management (AUM) slumped 20% after KuCoin faced charges from U.S. authorities. 

According to Nansen, KuCoin recorded $1.083 billion in outflows via Ethereum Virtual Machine-compatible (EVM) chains in the last two days. Furthermore, the exchange only recorded $144 million of inflows. The data provided by Nansen didn’t include bitcoin (BTC) withdrawals.

Blockchain data from Arkham Intelligence also revealed that the amount of crypto assets (including BTC) held by LuCoin addresses dipped to $4.8 billion from $6 billion on Tuesday. 

The withdrawal surge can be attributed to the crypto exchange’s regulatory trouble. On Tuesday, KuCoin and its founders have been charged by the Department of Justice and the CFTC for violating anti-money laundering laws in the United States.

The Commodity Futures Trading Commission also filed a suit against KuCoin. According to the CFTC, KuCoin failed to register as a futures commission merchant, swap execution facility or designated contract market despite offering both spot and futures trading services in the United States

Despite the ongoing challenges, KuCoin informed its users that its platform is operating as usual and their funds are safe.

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Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.