“Everything on KuCoin is functioning properly,” tweeted the company’s CEO Johnny Lyu on Saturday.
The reports began to circulate only hours after Voyager Digital declared it would halt client withdrawals due to the continuing Three Arrows Capital crisis.
The CEO of KuCoin maintains business as usual
According to the company’s CEO, rumours that KuCoin may be on the verge of collapse are false. In a series of early Saturday morning tweets, Johnny Lyu addressed rumours that the company may be facing bankruptcy, confirming that “everything on KuCoin is running normally” and that the exchange had no intentions to restrict withdrawals. Lyu also referred to speculations concerning KuCoin’s potential liquidity problems as “just hearsay” and clarified that the company has no connection to the Terra ecosystem, Three Arrows Capital, or Babel Finance.
On Friday night, rumours about KuCoin’s internal issues emerged, just hours after Voyager Digital became the next domino to collapse in the ongoing Three Arrows scandal. Friday, Voyager said that it was suspending user transfers, payments, and trading while “exploring strategic options” for the company’s future. Three Arrows defaulted on a Voyager loan of 15,250 Bitcoin and 350 million USDC valued at around $665 million, it was reported last month. Three Arrows has not yet repaid the debt.
In May, KuCoin secured $150 million via a funding round, valuing the company at $10 billion. According to Lyu’s Saturday release, the company is aggressively recruiting despite the current market downturn. Lyu stated that “transparency has always been one of [KuCoin’s] core values” and concluded his article with the encouraging message, “Don’t FUD, BUIDL.”
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