Analyst Views KuCoin as Acceptable, Despite Criminal Accusations

The Seychelles-based cryptocurrency exchange, KuCoin, has received a positive assessment from Ki Young Ju, the founder and CEO of crypto analytics service CryptoQuant, despite facing criminal allegations and concerns about its reserves among users. Ju stated in a post on X that the surge in BTC and ETH withdrawals, driven mainly by retail users, has had a small impact on the overall reserve. He further stated that KuCoin appears to have sufficient reserves to process user withdrawals and does not mix customers’ funds with its own reserves. According to Scopescan data, KuCoin’s total portfolio balance across multiple chains is $4.889 billion. In contrast, Ju highlighted the collapse of the FTX crypto exchange and the commingling of customer funds with reserves as a point of differentiation. The concern over KuCoin’s reserves, or those of any large exchange, is not limited to its users, as it can lead to a wider market exodus. However, despite the legal action against KuCoin’s founders, the market does not seem overly concerned, with the Crypto Fear & Greed Index still indicating an extreme level of greed.