KuCoin Denies Question Marks on its Reserves Saying ‘Misleading Information’

KuCoin, a leading crypto exchange, has recently reacted to notable allegations regarding its reserves. In this respect, KuCoin has denied the allegations, labeling them as “misleading information.” The crypto exchange took to its official social media account to share its latest response.

CryptoQuant Raises Allegations over KuCoin’s Dramatic Dip in $BTC Reserves

The allegations over the reserves of KuCoin have reportedly raised significant concerns and speculation across the crypto community. Particularly, CryptoQuant (a prominent community-based crypto analytics platform) released a statement about a notable dip in KuCoin’s Bitcoin reserves. The platform asserted that KuCoin has gone through a massive 77.6% decline in the $BTC reserves after the exchange mandated KYC.

In addition to this, CryptoQuant highlighted a dip from 18,300 $BTC to only 4,100 $BTC in the crypto exchange’s reserves. The crypto analytics firm believes that the respective slump has taken place after KuCoin recently implemented Know Your Customer requirements. CryptoQuant’s report claims that this resulted in an enormous outflow of approximately 14,200 $BTC following the above-mentioned update. Based on this, CryptoQuant has raised allegations concerning the financial stability of KuCoin.

KuCoin Denies Allegations, Shares Latest Proof-of-Reserves Report

However, KuCoin has denied these claims, saying that this is just a “misinformation.” Apart from that, the crypto exchange has assured the consumers that it is still financially strong. To back its statement, it also pointed toward the Proof-of-Reserves report that was audited by a 3rd party to, proving its solvency and transparency. However, some users say they believe CryptoQuant’s reserves rather than the centralized exchange’s own proof-of-reserve.