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KuCoin Faces $1 Billion Crypto Exodus amid US Charges, Assets Plummet 20%

source-logo  financemagnates.com 27 March 2024 12:20, UTC

KuCoin witnessed a staggering $1 billion in crypto withdrawals within 24 hours, coupled with a 20% decline in assets under management (AUM), following charges levied against the platform by US authorities. Data analysis from Nansen and Arkham Intelligence reveals the extent of the withdrawal surge and the subsequent depletion of assets.

KuCoin Bleeds $1.083B in Crypto Exodus

Data provided by Nansen and Arkham Intelligence indicates that KuCoin encountered an unprecedented outflow of approximately $1.083 billion across Ethereum Virtual Machine-compatible (EVM) chains, dwarfing the meagre inflows of $144 million during the same period. Notably, net outflows on the Ethereum network alone amounted to $840 million, as reported by Nansen.

"This is more than a 15% drop in assets held by the exchange," Nansen noted in a statement today (Wednesday), highlighting the substantial impact of the withdrawal wave.

Arkham Intelligence's blockchain data corroborated the significant decline in crypto assets held by KuCoin-tagged addresses, plummeting from $6 billion to $4.8 billion within a day. Despite potential price fluctuations, the decrease primarily stems from users withdrawing their assets from the platform in response to the unfolding legal challenges.

Investor Concerns Mount as Exchange Responds to Alleged Charges

The surge in withdrawals coincided with US federal prosecutors charging KuCoin and two of its founders with violating anti-money laundering laws. A Homeland Security Investigations Special Agent characterized the exchange as "an alleged multibillion-dollar criminal conspiracy," exacerbating concerns among investors.

While some users reported delays in withdrawal processing, blockchain data revealed that outgoing transactions from KuCoin were eventually executed. These delays were likely attributed to the high volume of withdrawal requests accumulated during the tumultuous period.

Responding to mounting apprehensions, KuCoin reassured users of the platform's stability and the safety of their assets in a social media statement. The exchange emphasized that it is "operating well," despite the challenging circumstances.