KuCoin Faces $1.7 Billion in Withdrawals After Criminal Charges

Cryptocurrency exchange KuCoin has faced a remarkable $1.7 billion in withdrawals after criminal charges were filed yesterday. Indeed, the exchange and its two founders were indicted by the Department of Justice for violating the Bank Secrecy Act and anti-money laundering laws.

ONchain data from Nansen has revealed the nearly $2 billion in withdrawals that the exchange has seen. Specifically, the analysis firm took to X (formerly Twitter) to update the figure’s surge over the last 24 hours, noting a 15% decrease in assets held by the cryptocurrency platform.

KuCoin Charges Lead to Nearly $2 Billion in Withdrawals

The digital asset industry has faced a rather volatile 2024 to this point. Although many assets have reached all-time highs this year, led by Bitcoin, there has been greater political dissent in the United States regarding regulatory standards. Moreover, one of the world’s largest cryptocurrency exchanges has faced criminal charges.

Subsequently, those charges have greatly diminished the exchange’s holdings. Specifically, Nansen’s on-chain data shows that KuCoin has faced $1.7 billion in withdrawals after the charges were filed. The Department of Justice issued the indictment on the exchange and two of its founders yesterday.

The plot thickened yesterday when WuBlockchain reported that the exchange considered closing in 2023. In a post to X, the platform said that the decision to cease operations was considered when criminal investigations launched that year. Additionally, they were subject to “multiple investigations in China.”

KuCoin CEO Johnny Lyu has spoken out in response to the allegations and charges. Specifically, he stated regulatory issues and “gaps” represented a challenge that all exchanges face. Amid the ongoing legal issues, he noted that the exchange will “prioritize user asset security above all else.”