KuCoin Witnesses $1 Billion Crypto Withdrawals
Despite these challenges, KuCoin has assured its users of the safety of their assets, emphasizing that the exchange is operating smoothly.
In the wake of charges from U.S. authorities alleging violations of anti-money laundering laws, KuCoin, a prominent cryptocurrency exchange, has experienced a massive surge in withdrawals, with users pulling out over $1 billion in digital assets within the past 24 hours, according to a news report by Coindesk.
KuCoin witnessed significant outflows totaling $1.083 billion across Ethereum Virtual Machine-compatible (EVM) chains, while inflows amounted to only $144 million during the same period. This surge in withdrawals has resulted in a substantial drop in assets under management (AUM) for the exchange, with its holdings plummeting by 20%.
The data reveals that on the Ethereum network alone, net outflows reached a staggering $840 million, indicating a significant amount of funds from the platform. Meanwhile, blockchain data from Arkham Intelligence indicates a notable decrease in the total value of crypto assets held by KuCoin, which fell from $6 billion to $4.8 billion.
The withdrawal frenzy comes in the aftermath of U.S. federal prosecutors charging KuCoin and two of its founders with violating anti-money laundering laws. The allegations have raised concerns among users, leading to a surge in withdrawal requests and prompting some to express dissatisfaction over delays in processing.
Despite these challenges, KuCoin has assured its users of the safety of their assets, emphasizing that the exchange is operating smoothly. While some delays may have occurred due to the influx of withdrawal requests, blockchain data confirms that outgoing transactions from KuCoin have been processed.
The developments surrounding KuCoin show the growing regulatory scrutiny facing cryptocurrency exchanges and the impact it can have on investor sentiment and platform operations.
