KuCoin, a prominent marketplace for cryptocurrencies, has misplaced many of its users’ coins. And this is because the government intends to speak to the business owners.
The most current asset reserve certificate from KuCoin reveals that there is more than 25% less Bitcoin (BTC) on the market. The Government of the United States government sued it because it broke bank rules and recovered funds.
KuCoin’s Crypto Drain
The site showed that users’ BTC shares decreased more than 16,000 in February to just over 12,000. About 4,000 BTC have been lost in just one month. People also took out more than 31,000 Ethereum (ETH). By the end of the month, the amount of funds had dropped to almost 113,000 ETH, a 21% decline.
In addition, the value of USDT went downwards, but so did the value of USDC and Tether. People did this from February 29 to March 31. They took out $19 million USDC and $265 million USDT.
There was a lawsuit against KuCoin on March 26. They stated that the exchange and its owners broke the Bank Secrecy Act by sending illegal funds to people who laundered it.
A lawyer named Damian Williams says that two of KuCoin’s co-founders, Chun Gan and Ke Tang, hid U.S. users on the site to get around Know Your Customer (KYC) and anti-money laundering (AML) rules. A great deal of people said the company did not follow the rules and let $5 billion worth of shady deals go through.
People promptly took out more than $350 million from the exchange in just 24 hours after hearing the news.
Two different government agencies, the DOJ and the CFTC, both sued it. DefiLlama states that KuCoin has the ninth most assets of all the coin markets in the world. But Caroline Pham, who is in charge of the CFTC, said that there might be concerns that the case has too many rules.
