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KuCoin Suffers from $500 Million Exodus

source-logo  u.today 27 March 2024 03:37, UTC

According to blockchain analytics platform Spot On Chain, cryptocurrency exchange KuCoin experienced roughly $500 million worth of withdrawals just hours shortly after the U.S. government slapped it with criminal charges.

The exchange lost $274 million worth of Tether (USDT), $55 million worth of Ethereum (ETH), $46 million worth of Ondo (ONDO) as well as millions of dollars worth of other tokens.

Despite the mass exodus, the exchange's hot wallets continue to hold roughly $3.6 billion worth of cryptocurrencies.

As reported by U.Today, KuCoin and two of its founders (Chun Gan and Ke Tang) have been charged with violating the Bank Secrecy Act. The duo has been accused of making the trading platform "a haven" for money laundering.

The exchange has been accused of misleading investors about the composition of its user base.

KuCoin failed to obtain necessary regulatory approvals in the US despite the fact that US citizens accounted for 17% of its users.

Jake Chervinsky, chief legal officer at Variant, has stated that the legal action against KuCoin should not be surprising to anyone who has followed US enforcement over the past few years. "The simple lesson: if you want access to the US market, you need to follow US law," he added.

The exchange seemingly remains defiant despite its legal predicament. In a post on X, it has clarified that the assets of its users remain "absolutely safe." KuCoin's lawyers are currently investigating the details of the DOJ charges, according to the post.

The exchange has also acknowledged that withdrawals are now taking longer than usual due the volume of transactions.