Cryptocurrency exchange KuCoin finds itself in hot water, facing criminal allegations from the US Department of Justice. However, a crypto analytics firm claims the exchange appears to be functioning normally.
Ki Young Ju, CEO of CryptoQuant, a crypto analytics service, recently stated that KuCoin seems “fine” from an on-chain perspective. His analysis suggests the exchange maintains separate reserves for customer funds and processes withdrawals smoothly.
Data from Scopescan indicates KuCoin holds a total portfolio balance of $4.889 billion across various blockchains. Additionally, Ju highlights the lack of evidence suggesting KuCoin mixes customer funds with its own reserves, unlike the now-defunct FTX exchange.
US DOJ Accuses KuCoin Founders
The US Department of Justice has accused KuCoin founders Chun Gan and Ke Tang of failing to implement an Anti-Money Laundering (AML) program. This raises concerns about potential money laundering and terrorist financing activities on the platform.
Crypto investors tend to withdraw funds from exchanges facing legal or reserve-related issues. This mass exodus can trigger a domino effect, impacting the broader market. The FTX collapse serves as a prime example, with Bitcoin prices plunging over 20% within a week of the news.
Despite the legal action against KuCoin’s founders, the market seems relatively unfazed. The Crypto Fear and Greed Index currently sits at 83, indicating an “extreme greed” sentiment.
Read Also: LIF3.com integrates Fireblocks to elevate safety and security in next-generation consumer DeFi
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
- Advertisement -
Comments are closed.