KuCoin Considered Business Sale Amid Legal Challenges in 2023

Accused of laundering $9 billion, the cryptocurrency exchange KuCoin considered ceasing operations and selling the platform as early as 2023. This was reported by journalist Colin Wu, citing three independent sources, in a tweet.

In 2023, the trading platform faced a criminal investigation by the New York State Attorney General’s Office. Chinese authorities also showed interest in its activities.

KuCoin communicated the potential sale of its business to relevant personnel at several exchanges, including Binance.

According to Scopescan, the outflow from KuCoin on the Ethereum network alone exceeded $800 million in the past 24 hours. The exchange’s assets are valued at $4.8 billion.

KuCoin representatives stated that they continue operations and that user assets are secure.

#KuCoin is operating well, and the assets of our users are absolutely safe. We are aware of the related reports and are currently investigating the details through our lawyers. KuCoin respect the laws and regulations of various countries and strictly adheres to compliance…

— KuCoin (@kucoincom) March 26, 2024

“We are aware of the situation and are currently investigating the details through our lawyers. KuCoin respects the laws and regulations of various countries and strictly adheres to compliance standards,” they wrote.

In March, the U.S. Federal Prosecutor accused KuCoin and two of its founders of violating banking secrecy laws and anti-money laundering regulations, as well as failing to file suspicious activity reports.

A separate lawsuit against KuCoin was filed by the CFTC, accusing the exchange of operating in the U.S. without registration.