KuCoin CEO formally denies rumours of change being ‘bancrupt’

Because the sell-off within the cryptocurrency market continues, sparked by the FTX liquidity disaster spilling over to different members within the sector, the CEO of KuCoin determined to publicly deal with the allegations that his buying and selling platform was combating insolvency.

Certainly, KuCoin’s CEO Johnny Lyu criticized the latest ‘FUD’ (Concern, Uncertainty, and Doubt) round his crypto exchange which, as he mentioned, was “most likely the tenth time prior to now 6 months some rumor on Twitter circulates that KuCoin is ‘bancrupt,’” in his weblog publish published on November 9.

Particularly, after crypto analytics platform Nansen revealed its change stablecoin outflow chart, which, based on Lyu, mistakingly confirmed an ERC20 to TRC20 translation as $300 million draining from his platform, rumors began circulating about KuCoin being in bother.

Misunderstood knowledge

As he defined, the data was a easy misinterpretation which has been cleared within the meantime:

“We went to nice lengths to make clear with Nansen that it was primarily a forex translation from ERC20 USDT to TRC20 USDT. (…) Nansen acknowledged that they solely monitor ERC20 tokens, so the TRC20 USDT didn’t present up and was mistakenly interpreted as an outflow.”

To drive his level residence, Lyu posted Tronscan and Etherscan explorer screenshots and hyperlinks to transaction particulars that help his argument. Notably, the Tronscan screenshot reveals the related TRC-20 USDT inflow transaction to “KuCoin-Chilly” crypto wallet:

On the similar time, the Etherscan screenshot demonstrates the recorded ERC-20 USDT outflow transaction from the crypto change’s “KuCoin 6” deal with:

In the meantime, Nansen’s CEO, Alex Svanevik, posted an explanation of the matter as effectively, confirming that the “outflow you’re seeing on KuCoin comes from a single $300m USDT community swap to Tron.”

Dedication to transparency

Lastly, Lyu promised customers that “similar to prior to now, we might by no means misappropriate consumer funds and we’ll guarantee full transparency,” including that:

“KuCoin will all the time assure 1:1 withdrawal. (…) To those that are nonetheless involved, we’ll launch our Merkle tree proof-of-reserves or POF in a single month.”

This announcement is in step with the platform’s repute as ‘the People’s Exchange’ and the stance of its fellow exchanges Binance and OKX, which each stressed the need of finishing up the Proof of funds (POF) and likewise promised to publish theirs quickly.