KuCoin witnessed a staggering $1 billion in crypto withdrawals within 24 hours, coupled with a decline of 20% in assets under management, following charges levied against the platform by US authorities. Data analysis from Nansen and Arkham Intelligence has revealed the extent of the withdrawal surge and the subsequent depletion of assets.
KuCoin Bleeds $1.083B in Crypto Exodus
Data provided by Nansen and Arkham Intelligence hasindicated that KuCoin encountered an unprecedented outflow of approximately $1.083 billion across Ethereum Virtual Machine-compatible chains, dwarfing the meagre inflows of $144 million during the same period. Notably, net outflows on the Ethereum network alone amounted to $840 million, as reported by Nansen.
"This is more than a 15% drop in assets held by the exchange," Nansen noted in a statement today (Wednesday), highlighting the substantial impact of the withdrawal wave.
Arkham Intelligence's blockchain data corroborated the significant decline in crypto assets held by KuCoin-tagged addresses, plummeting from $6 billion to $4.8 billion within a day. Despite potential price fluctuations, the decrease primarily stems from users withdrawing their assets from the platform in response to the unfolding legal challenges.
Investor Concerns Mount as Exchange Responds to Alleged Charges
The surge in withdrawals coincided with US federal prosecutors charging KuCoin and two of its founders with violating anti-money laundering laws. A Homeland Security Investigations Special Agent characterized the exchange as "an alleged multibillion-dollar criminal conspiracy," exacerbating concerns among investors.
XRP Dump Ahead? Will Ripple Survive? Should You Withdraw Your Funds From KuCoin? | MetaLawMan https://t.co/WOj1xLaCIl
— The Wolf Of All Streets (@scottmelker) March 27, 2024
While some users reported delays in withdrawal processing, blockchain data revealed that outgoing transactions from KuCoin were eventually executed. These delays were likely attributed to the high volume of withdrawal requests accumulated during the tumultuous period.
Responding to mounting apprehensions, KuCoin reassured users of the platform's stability and the safety of their assets in a social media statement. The exchange emphasized that it is "operating well," despite the challenging circumstances.
This article was written by Tareq Sikder at www.financemagnates.com.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments