US$800 million in cryptocurrency withdrawals

Important facts:
  • The impact on exchange reserves appears to be small at the moment.

  • After this news, there has been some impact on the price of Bitcoin (BTC).

Users of KuCoin, a Bitcoin (BTC) and digital asset exchange, have withdrawn a significant amount of their funds, over USD 800 million in the cryptocurrency. This comes after the United States Department of Justice filed a lawsuit against the company.

Both the exchange and its two founders Being prosecuted for allegedly violating anti-money laundering laws (AML) in the United States.

The lawsuit focuses on the actions of Chun Gan and Ke Tang, who the indictment accuses of ignoring U.S. laws “to build KuCoin into one of the largest cryptocurrency exchanges in the world.”

This situation has arisen Immediate reaction from many investors who have chosen to withdraw their crypto assets, For example, in the following graph from the browser data Nansen reserves have been observed in Ether (ETH) and KuCoin ERC-20 tokens.

Balance of Ethereum tokens on KuCoin. waterfall: Nanase,

Also, in the last 24 hours He withdrew 1,280 Bitcoin (BTC), Despite the magnitude of the withdrawal, the exchange still maintains considerable cryptocurrency holdings, in the case of Bitcoin it holds 4,082 BTC worth $286 million. Overall, KuCoin has reserves of $5.2 billion, According to CoinCorp.

for now, Impact on exchange reserves appears to be limitedHowever the situation has caused significant concern in the cryptocurrency community.

Venezuelan lawyer Ana Ojeda is executive director of Legal Rocks, a law firm specializing in Web3 commented About this. Ojeda said that, although KuCoin has compliance standards such as “know your customer” (KYC), He is not surprised by the United States’ interest in restricting the operation of exchanges like KuCoin For US citizens.

He also told Slowness in user withdrawal processThis indicates that KuCoin is facing its first major “stress test”.

These types of situations, especially on platforms like KuCoin, usually lead to mass withdrawal movements by users. KuCoin, being the second largest exchange after Binance in terms of users, is facing this challenge with the sudden increase in transaction volume and on-chain traffic.

KuCoin team has Recognized Withdrawals are delayed due to high transaction volume. However, Assure users that all assets are secure And they are working to resolve the situation.

The exchange has also stated that They are aware of the lawsuit and are investigating the details Through its lawyers, reiterating that the exchange continues to operate, as reported by CryptoNoticias.

Currently, news of lawsuit against KuCoin There has been little impact on the price of BitcoinAs seen in the following graph trading view,

Over the past 24 hours, the digital currency has seen a 0.81% decline in price, falling from $71,000 to $70,100 in that period.

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