KuCoin Users Report Fund Blockages

On February 21, Reddit users began posting messages in the KuCoin subreddit about issues with withdrawing funds from the cryptocurrency exchange.

“On October 18, I transferred $4800 to KuCoin. My mistake was that the money was sent from a corporate account, so the exchange did not accept it. On November 6, I received a message about a refund, but almost four months later, I still have not received it,” stated the post’s author.

According to the user, he has already provided the trading platform’s administration with all the requested information. HSBC, the bank used by the Redditor, was unable to assist as “the funds were deposited correctly.”

Another subreddit participant reported that his account was blocked for two months. KuCoin accused him of “serious charges” and claimed the account was used for criminal purposes. However, the exchange did not provide details of the investigation.

Additionally, KuCoin froze Monero tokens worth about $3000 belonging to another user. Another user also complained about withdrawal blockages.

Some speculated that the issue might be related to the KYC system. Meanwhile, Redditors urged users to “leave” the platform to avoid potential problems.

According to KuCoin, moderators are already investigating the incidents described in the subreddit.

KuCoin’s public relations specialist, Eden Gao, told Cointelegraph that the administration is communicating with users regarding all four cases.

“KuCoin does not freeze user accounts or prohibit them from managing their assets. To enhance security, the exchange implements a comprehensive risk control system and voluntarily cooperates with authorities and law enforcement agencies worldwide to improve service,” he added.

A KuCoin representative emphasized that some users “may experience disruptions” as the platform serves over 31 million accounts.

In November 2023, Russian-speaking clients of Bitget complained about fund freezes. Representatives of the exchange called these reports “disinformation.”

In January 2022, Binance clients faced numerous account blockages. It was later revealed that the case was related to the Bitzlato crypto exchange, which U.S. authorities accused of laundering $700 million for the darknet marketplace Hydra.