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Kucoin’s Legal Woes Spark Massive $1.7 Billion Withdrawal, Onchain Data Reveals

source-logo  news.bitcoin.com 27 March 2024 05:30, UTC

After the Kucoin indictment on Tuesday, subsequent onchain data from Nansen indicates that, to date, $1.7 billion in funds have been withdrawn from the exchange.

Crypto Assets Worth $1.7 Billion Pulled From Kucoin

Since the Department of Justice (DOJ) accused Kucoin and its founders of breaching the Bank Secrecy Act and anti-money laundering regulations, there has been a notable withdrawal of funds from the exchange.

The onchain analysis and intelligence company Nansen revealed on Wednesday that, thus far, crypto assets totaling $1.7 billion have been withdrawn. Nansen reported this at 5:46 a.m. Eastern Time on Mar. 27, 2024.

The onchain analysts stated:

At the time of writing, over the past 24 hours, there has been an outflow of over $842m on Ethereum and $938m on EVM chains from an initial $6b base in holdings. This is more than a 15% drop in assets held by the exchange.

Figures from Arkham Intelligence further show significant reductions in crypto reserves. Kucoin’s bitcoin (BTC) reserves dropped by $13.39 million, $15 million worth of NAKA left, and $12.22 million worth of TELE.

“If we look at chains beyond Ethereum and other Nansen supported chains, like Bitcoin and Solana, from our last update, there’s been a drop of $818m,” Nansen added in an X post on Wednesday morning.

What do you think about the outflows Kucoin has seen following the indictment? Share your thoughts and opinions about this subject in the comments section below.