One of the world’s largest exchanges is actively battling allegations of FUD
Wallets belonging to centralized exchange KuCoin are showing unusual movement of funds worth around $1.7 billion cryptocurrency is going Removed from them, there is only $10 million left at this point.
The outflow of such large funds from the institution caused great panic among investors who keep their money on the exchange or traders who are actively exchanging money using KuCoin’s platform.
All 14 Kucoin labeled wallets went from $1.8b to $10m in one day. Their ETH stack remains untouched and only holds MATIC, NMR and LEND
Anyone else following this?? https://t.co/usoBkvvDme pic.twitter.com/nZDbYyeve5— beetle (@1kbeetlejuice) 4 July 2022
Earlier, the CEO of KuCoin released an exhaustive thread talking about the security of users’ funds and FUD, which revolved around an exchange that was accused of huge exposure to funds. , such as 3AC which was recently liquidated. Fortunately, the CEO of the exchange rubbished all those rumors and told everyone that KuCoin is “doing well.”
At press time, all withdrawals and other operations on the exchange operate as usual, and no warnings are being issued. There were also no reports of withdrawals being refused or funds withheld without the user’s consent.
What could be the reason behind the large number of withdrawals?
Despite the announcement made by the CEO of the exchange, there is still no official explanation behind the unusual operation observed by the community. Earlier, the exchange’s leadership explained a $80 million transaction from KuCoin’s official wallet to an “unknown wallet” posted by WhaleArt. The CEO said that the exchange is transferring funds through cold wallets.
Transactions from KuCoin Cold Wallet to KuCoin Hot Wallet. nothing to worry about. #SAFU https://t.co/b35YS5B03U— johnny_kucoin (@lyu_johnny) 2 July 2022
The most likely reason behind the increased activity of exchange-related wallets is the massive amount of withdrawals by investors who were exposed to the growing FUD around the exchange and its community.
The most recent tweet by Johnny Liu’s official account was the acronym “GM”.