KuCoin, a prominent cryptocurrency exchange, is facing legal scrutiny amidst regulatory challenges, prompting comparisons with a fate similar to FTX. Insights from CryptoQuant CEO Ki Young Ju shed light on KuCoin’s current condition and how it differs from that of FTX.
How KuCoin Differns From FTX
In a recent tweet post, CryptoQuant CEO Ki Young Ju highlighted the flexibility of KuCoin’s on-chain reserves, particularly in Bitcoin (BTC) and Ethereum (ETH) withdrawals. Despite a surge in withdrawals, largely from retail users, KuCoin maintains sufficient reserves.
Interestingly, this surge has had only a minor impact on KuCoin’s overall reserve, showcasing its stability. Unlike FTX, which seems to mix customers’ funds with its own, KuCoin maintains clear separation.
Further Ju points out that KuCoin’s reserves are organic and stable, contrasting with FTX’s precarious position, where reserves hover close to zero. Through a revealing chart, Ju highlights the disparity, FTX’s charts depict numerous bulk deposits and withdrawals, indicating potential opacity and regulatory non-compliance.
Also Check Out The: KuCoin Lawsuit: Bitcoin, Ethereum, Litecoin Status Under Scrutiny by CFTC?!
KuCoin’s Strength in Reserves
However, KuCoin’s robust reserves, transparency, and adherence to legal standards position it favorably amidst regulatory challenges. With over 100,000 ETH and more than 7,000 BTC in reserves, KuCoin appears well-equipped to facilitate smooth withdrawals
Notable assets withdrawn include 274 million USDT, 15,500 ETH, 12 million FET, 50 million ONDO, and 95.38 million GHX, among others.
Recent data from 0xscope revealed a substantial net outflow of approximately $1.2 billion from the KuCoin exchange in a single day. Despite the pronounced outflow of assets, KuCoin’s hot wallets still maintain a substantial reserve, holding over $3.6 billion worth of assets on the Ethereum network.
In essence, Ju’s insights suggest that while both exchanges face legal scrutiny, KuCoin’s transparent and stable reserve management sets it apart, offering reassurance amid turbulent times.
KuCoin Faces Legal Charges
Meanwhile, on the legal front, the US Department of Justice (DoJ) recently filed charges against KuCoin exchange and its co-founders, Chun Gan and Ke Tang, accusing them of various violations, including operating an unlicensed money-transmitting business and breaching the Bank Secrecy Act. However, it looks like they might face around 5-10 years in prison.
