Legal Challenges at Kucoin Trigger $1.7 Billion Exodus According to Onchain Evidence

by Pooja Chauhan · 27/03/2024

Legal Challenges at Kucoin Trigger $1.7 Billion Exodus According to Onchain Evidence

BollywoodFever, March 27: Following the Department of Justice’s (DOJ) indictment against Kucoin for alleged violations of the Bank Secrecy Act and anti-money laundering statutes, there has been a significant movement of funds out of the exchange. Onchain data analysis provided by Nansen has revealed that, as of now, cryptocurrency assets valued at $1.7 billion have been withdrawn from Kucoin.

DOJ Indictment Accuses KuCoin Crypto Exchange of Laundering $9 Billion and Violating Anti-Money Laundering Regulations

This revelation came to light when Nansen, an onchain analytics and intelligence firm, disclosed on the morning of March 27, 2024, that a substantial sum of crypto assets had left the exchange since the legal accusations became public. Nansen’s report, issued at 5:46 a.m. Eastern Time, highlighted the scale of the withdrawals.

According to Nansen’s analysis:

At the time of writing, over the past 24 hours, there has been an outflow of over $842m on Ethereum and $938m on EVM chains from an initial $6b base in holdings. This is more than a 15% drop in assets held by the exchange.

Arkham Intelligence, another analytics provider, corroborated these findings by detailing notable decreases in Kucoin’s cryptocurrency reserves, including a $13.39 million reduction in bitcoin (BTC) reserves, a departure of $15 million in NAKA tokens, and a $12.22 million drop in TELE tokens.

Nansen further noted in a social media post on Wednesday morning, “Expanding our analysis to include networks beyond Ethereum and other Nansen-supported chains, such as Bitcoin and Solana, we’ve seen an additional $818 million decrease from our last report.” This comprehensive analysis underscores the significant impact of the legal challenges facing Kucoin on its holdings and user confidence, leading to a marked exodus of funds from the platform.