KuCoin assures users their assets remain intact despite US SDNY indictment.

KuCoin, a cryptocurrency exchange, has assured its users that their assets are secure despite facing legal allegations from United States authorities. The exchange stated that it is operating smoothly and is currently investigating the details of the allegations through its legal team. KuCoin emphasized its commitment to complying with laws and regulations in various countries. Meanwhile, the value of KuCoin’s native token, KuCoin Token (KCS), has dropped by 12% in the past 24 hours. The US Southern District of New York (SDNY) recently filed criminal charges against the co-founders of KuCoin, Chun Gan and Ke Tang, accusing them of running an unlicensed money-transmitting business and violating anti-money laundering regulations. Prosecutors claim that KuCoin received suspicious and criminal proceeds amounting to over $5 billion since its establishment in 2017. The exchange allegedly onboarded US users without proper licensing and accounted for more than 18% of its user base in 2018. The Commodity Futures Trading Commission (CFTC) also filed a complaint against KuCoin, accusing it of offering and executing commodity derivatives without implementing the required know-your-customer (KYC) compliance procedures. The CFTC claimed that KuCoin did not enforce IP verification procedures to prevent US users from accessing its platform. The criminal and civil proceedings are ongoing, and the co-founders of KuCoin are currently evading authorities. However, neither prosecutors nor regulators have accused KuCoin of mishandling users’ assets.