coincodex.com
Key highlights:
- KuCoin CEO Johnny Lyu has denied rumors that the exchange is insolvent
- Lyu says that KuCoin is "operating well" and has no exposure to Three Arrows Capital or Celsius
- The rumors seem to have had a negative impact on the market for KuCoin Token (KCS)
KuCoin CEO denies insolvency rumors, says KuCoin is operating well
KuCoin CEO Johnny Lyu has addressed rumors about the exchange that are circulating in the cryptocurrency community, particularly on “crypto Twitter”. According to the rumors, KuCoin was going to halt withdrawals because the firm is supposedly insolvent.
Lyu denied the rumors, saying that the exchange doesn’t have any plans to halt withdrawals, and that the KuCoin platform is “operating well”. He also highlighted KuCoin’s recent $150 million capital raise, which concluded in May and valued the company at $10 billion. Lyu also pointed out that KuCoin is still hiring employees despite many other exchanges either freezing their hiring or laying off employees.
Notably, Lyu says that KuCoin does not have any exposure to Terra (LUNA), Three Arrows Capital and Babel Finance. In a later comment, Lyu also said that the firm has no exposure to the troubled cryptocurrency lender Celsius.
According to Lyu, KuCoin will soon release a review report for the first half of 2022, which will provide additional insights about the exchange’s operations. The KuCoin CEO also said that his company “reserves the right to take legal actions” against those who “intentionally spread unverified info”.
“Being transparent is always one of our key principles. We will soon publish our 2022 H1 review report where you can know more about our operations. For FUDers who intentionally spread unverified info, KuCoin reserves the right to take legal actions.”
KuCoin Token (KCS) has been struggling in the markets recently, and the rumors about insolvency likely provided some additional selling pressure. With a 7-day performance of -21.5%, KCS is the second-worst performer in the cryptocurrency top 100 in this time period.
KuCoin is among the 10 largest cryptocurrency exchanges by trading volume, and is known among traders for listing a very large amount of altcoins. In the last 24 hours, KuCoin handled $1.11 billion worth of trading volume on its spot markets and about $3.31 billion in volume on its derivatives markets.