The cryptocurrency exchange KuCoin has recorded a net outflow of over 780 million dollars in the last 24 hours after the U.S. Department of Justice filed an indictment against the company on Tuesday.
Data from the crypto analytics firm Nansen showed that KuCoin experienced a total outflow of 882 million dollars in the last 24 hours and an inflow of 99 million dollars, resulting in a net outflow of 783 million dollars. The dataset covers flows on Ethereum, BNB chain, Avalanche, Fantom, and Polygon.
The significant exodus of funds from KuCoin comes after the DOJ announced an indictment against KuCoin and two of its founders on Tuesday, alleging that they violated money laundering laws. The CFTC also reiterated in its complaint against KuCoin that Ethereum and several other cryptocurrencies fall under the classification of commodities.
– Given past incidents, it is expected that any major regulatory move would result in an increase in outflows, but as long as the exchange maintains customer deposits and funds 1:1, it should remain solvent even under such stress – said Martin Lee, head of communications at Nansen.
KuCoin’s Bitcoin reserve was around 6,277, while its Ethereum reserve was 99,359, according to CryptoQuanta data. – As far as blockchain data is concerned, KuCoin is fine. Withdrawals of Bitcoin and Ethereum have increased, mainly driven by small users, with little impact on the overall reserve. They seem not to mix customer funds and have enough reserves to process user withdrawals – wrote Ki Young Ju, founder and CEO of CryptoQuanta on X.
