Nearly $1.8 billion has been taken from various cryptocurrency wallets linked to the cryptocurrency exchange KuCoin. Reportedly, there is currently ‘only’ $10 million on the wallets in question.
Temporary panic
That there has been such a large outflow from the entity, was apparent from data from Etherscan. This outflow has caused some panic among investors who keep their money on the exchange and among traders who actively exchange money through the crypto platform. However, the exchange’s CEO almost immediately dispelled the rumors and told that KuCoin is working well.
Everything works as it should
All functions are currently working properly. All withdrawals and other actions performed on the platform work as normal. Also, no separate warnings are issued. Also, there are no reports of rejecting newly submitted withdrawals or holding funds without a user’s consent. There seems to be nothing wrong with this on the platform.
Users have nothing to fear from this. Still, there is no official explanation for the somewhat unusual operations that have been noticed by the community.
Earlier, an $80 million transaction was sent from the official KuCoin wallet to an unknown wallet at the time. This transaction was subsequently explained, revealing that the CEO is withdrawing funds from their cold wallets. It is possible that money is now being sent to these cold wallets.
Another reason behind the increased activity of exchange-related wallets is the massive withdrawal volume caused by investors exposed to the FUD that surged around the exchange and its community.