KuCoin Sees Withdrawal Spike Following US Charges, Ethereum Tokens Highly Involved

By: Eliza Bennet

Following the levy of criminal charges by US authorities, crypto exchange KuCoin experienced a significant surge in withdrawal requests. The charges allege that the exchange and its founders operated without proper legal permissions and violated bank secrecy and anti-money laundering (AML) laws.

Data indicates that there was a substantial increase in withdrawals from multiple categories of traders, including whales, funds, smart money, and market makers. Ethereum-based tokens specifically led the withdrawal surge.

It was reported that total withdrawals were approximately $500 million. These consisted of ETH, USDT, ONDO tokens, and FET, among others. Two whale accounts reportedly moved $86 million USDT to platforms like OKX and Bybit. Regardless of elevated levels of withdrawal activity, the CryptoQuant CEO assured that KuCoin holds sufficient funds to process withdrawals and does not mix their customers' funds.