One of world’s biggest exchanges is actively battling FUD allegations
Wallets linked to centralized exchange KuCoin show unusual fund movements with around $1.7 billion in cryptocurrency being drained from them, with only $10 million remaining at this point.
Such a large outflow of money from the entity caused a lot of panic among investors who hold their money on the exchange or traders who are actively exchanging funds using KuCoin’s platform.
Previously, the CEO of KuCoin posted a whole thread about user funds security and FUD that goes around an exchange that has been accused of having a large exposure to funds, like 3AC which was liquidated recently. Luckily, the CEO of the exchange dismissed all these rumors and told everyone that KuCoin was “working well”.
At press time, all withdrawals and other operations on the exchange work as usual, and no warnings are being released. There were also no reports about withdrawals getting rejected or funds held without a user’s consent.
What could be the reason for the large exits?
Despite the announcement made by the CEO of the exchange, there is still no official explanation behind the unusual trades noticed by the community. Previously, the exchange official explained the $80 million transaction from the official KuCoin wallet to an “unknown wallet” published by WhaleAlert. The CEO said the exchange was transferring funds from the cold wallet.
The most likely reason behind the increased activity of exchange-related wallets is the massive withdrawal volume caused by investors who were exposed to the FUD rising around the exchange and its community.
The most recent tweet made by Johny Lyu’s official account was the concise “GM”.
