Charges Against KuCoin
On March 26th, the US Department of Justice (DOJ) and Commodity and Futures Trading Commission (CFTC) sued KuCoin, accusing it of:
- Breaking anti-money laundering laws
- Operating an unlicensed money transfer business
- Failing to register as a futures commission merchant
Impact on KuCoin
- Token Price Drop: KuCoin’s token (KCS) has fallen 18.9% in the past month.
- Volume and Market Share Decline: KuCoin’s daily volume has dropped by 74% and its market share has halved.
- Massive Outflows: Users have been transferring funds to other exchanges and on-chain wallets, with total outflows reaching nearly $1.2 billion.
- Unsuccessful Attempts to Stop Outflows:
KuCoin’s $10 million Airdrop plan has failed to halt the decline in daily volume.
Key Findings
- Despite DOJ claims, KuCoin has no direct connection to Tornado Cash.
- The stolen funds from KuCoin’s 2020 hack have been “privatized” using Tornado Cash.
- Users are moving their assets to other exchanges and on-chain wallets to protect their funds.
