KuCoin Identified the User Behind Thousands of Meme-Tokens

The cryptocurrency exchange KuCoin confirmed that the address allegedly responsible for launching thousands of fraudulent memecoins belongs to one of its users. Cointelegraph reports.

On 26 April, a Twitter user identified the wallet that had been creating several tokens a day for two years.

.@CoinGurruu the wallet that you claim has launched 2-5 memecoin scams per day for the past two years is owned and controlled by @kucoincom. @etherscan has already marked this address as «Fake_Phishing179336».

Comments @lyu_johnny? https://t.co/8sy07KujUa pic.twitter.com/gziza5mVNW

— James Edwards (@librehash) April 27, 2023

Another member of the community noted that the address of the suspected scammer “belongs to and is controlled by” KuCoin. At present Etherscan has tagged it as phishing.

In a briefing with the publication, the exchange confirmed ownership of the wallet. However, KuCoin’s chief executive Johnny Lyu said the platform would not block the user until it receives a formal directive from authorities.

“When the reporting party provides legal documents, we will assist and cooperate with law enforcement authorities to take measures to control risks in accordance with our user agreement and the laws of the Seychelles,” Lyu explained.

The company stressed that if members of the community encounter any suspicious activity, they should report it to the police and provide evidence to the exchange team.

Earlier, an unknown hacked the KuCoin Twitter account, which led to a loss of $22,628 among users. The platform said that funds on the exchange remain safe.

Earlier in April, on-chain analyst ZachXBT discovered the address, which created 114 “fraudulent” memetokens in 45 days.