Nansen: $800 million worth of crypto assets were withdrawn from the KuCoin exchange in a day
According to the Nansen analytical platform, over the past day, the outflow of funds from the KuCoin cryptocurrency exchange amounted to about $ 800 million due to new charges by the US Department of Justice.
Nansen analysts reported that the total outflow of funds from KuCoin in the last 24 hours amounted to $882 million. At the same time, the exchange received funds in the amount of $ 99 million, respectively, net outflow amounted to $ 783 million. The researchers analyzed the movement of funds in the Ethereum, BNB Chain, Avalanche, Fantom and Polygon networks. The transfer of funds from the site occurred shortly after the US Department of Justice accused KuCoin and its founders of violating anti-money laundering (AML) rules and non-compliance with the "Know Your Customer" (KYC) procedure.
Martin Lee, Head of Communications at Nansen, commented on the situation. According to him, any actions by regulators can lead to a sharp outflow of funds from exchanges, however, KuCoin holds customer deposits and funds in a ratio of 1:1. Therefore, the trading platform must remain solvent even under such stress. According to Nansen, KuCoin has crypto assets worth $5.1 billion.
Researchers at another CryptoQuant analytical company found out that as of March 27, KuCoin reserves number about 6,277 bitcoins and 99,359 ethers. The founder and CEO of CryptoQuant, Ki Young Ju, explained that the withdrawal of BTC and ETH increased dramatically mainly due to retail users, and this did not have a strong impact on the overall reserve of the exchange. This means that KuCoin does not combine client assets with its own funds and has enough reserves, Ki Yong-joo concluded.
On-chain wise, @kucoincom is fine.$BTC and $ETH withdrawals surged, driven mainly by retail users, with a small impact on the overall reserve.
— Ki Young Ju (@ki_young_ju) March 27, 2024
They appear to not commingle customers' funds and have sufficient reserves to process user withdrawals. pic.twitter.com/p4bJJpwnFJ
Source: https://bits.media/nansen-za-sutki-s-birzhi-kucoin-vyvedeny-kriptoaktivy-na-800-mln/
