Crypto News– According to on-chain data, KuCoin witnessed a net outflow exceeding $780 million across multiple chains within the last 24 hours, following the U.S. Department of Justice’s charges lodged against it on Tuesday.
KuCoin experiences close to 800 million Dollars in net outflows post-DOJ indictment
Data sourced from crypto analytics firm Nansen revealed that KuCoin recorded a total outflow of $882 million within the past 24 hours as of Wednesday noon in Asia, across various networks. Concurrently, there was an inflow of $99 million, resulting in a net outflow of $783 million. The data encompasses flows on Ethereum, BNB Chain, Avalanche, Fantom, and Polygon chains.
This significant outflow from KuCoin occurred subsequent to the DOJ’s unveiling of the indictment on Tuesday against KuCoin and two of its founders, accusing them of violating anti-money laundering laws. Additionally, the Commodity Futures Trading Commission reiterated in the KuCoin complaint that ether and several other cryptocurrencies are commodities.
Given past incidents, it’s expected that any large regulatory crackdown would result in a surge in outflows, but as long as the exchange has held customer deposits and funds 1:1, it should remain solvent even under such stress.
Martin Lee
Based on data compiled by Nansen, the exchange is documented to possess cryptocurrency holdings valued at approximately $5.1 billion.
Insufficient disturbance detected in exchange reserves
According to the latest data from CryptoQuant, as of Wednesday noon in the Asian region, KuCoin’s bitcoin reserve was reported to be approximately 6,277 bitcoin. Additionally, the exchange’s ether reserve amounted to around 99,359 ether.
In a recent post, Ki Young Ju, the founder and CEO of CryptoQuant, reassured that KuCoin’s on-chain data appears to be stable.
On-chain wise, @kucoincom is fine.$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
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