CryptoQuant’s CEO assures KuCoin’s Stability in the Face of Legal Challenges and Increases in Withdrawals

This reassurance comes after the US Department of Justice accused Chun Gan and Ke Tang, co-founders of KuCoin, on March 26.

Ki Young Ju, CEO of crypto analytics company CryptoQuant, has declared the Seychelles-based cryptocurrency exchange KuCoin “good” despite the fact that it is facing criminal accusations and worries over its financial reserves.

Users are concerned that KuCoin won’t be able to process their withdrawal requests in time, especially in view of the recent spikes in Bitcoin (BTC) and Ethereum (ETH) withdrawals; this is why Ju is endorsing the cryptocurrency.

Ju observed that although retail customers made the majority of these withdrawals, KuCoin’s total reserves remained unaffected.

According to his assurance on X, “They seem to not commingle clients’ assets and have adequate reserves to handle user withdrawals,” which suggests that the exchange is stable based on an on-chain examination.

Data from Scopescan shows that KuCoin’s entire portfolio balance across all of its blockchain networks is worth $4.889 billion, so the company’s finances really do seem good.

This reassurance comes after the US Department of Justice accused Chun Gan and Ke Tang, co-founders of KuCoin, on March 26.

Some of the claims made against the platform were that it enabled “money laundering and terrorist funding” and that it had not implemented an anti-money-laundering policy.

Additionally, Ju brought attention to a crucial operational distinction between KuCoin and the defunct cryptocurrency exchange FTX, highlighting the fact that KuCoin does not mix client cash with its own reserves.

When investors pull their money out of exchanges due to worries about reserve status or legal difficulties, operational integrity is vital for user confidence.

A tweet by Changpeng “CZ” Zhao, the former CEO of Binance, about FTX’s native FTT coin caused the crypto community to lose faith in the company and quickly remove cash from FTX.

When major exchanges like KuCoin have problems with their reserves, it might affect the whole market, not just their user base.

Yet, the cryptocurrency industry has been mostly silent in the face of the grave accusations leveled against KuCoin’s creators.

The larger crypto market seems unconcerned by the events surrounding KuCoin, as the Crypto Fear & Greed Index, which measures market mood, shows a “high amount of greed” with a score of 83.

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