KuCoin, a cryptocurrency marketplace, has absolutely denied allegations that they were limiting transactions on their network due to massive losses sustained as a result of the LUNA crash.
Johnny Lyu, the CEO of KuCoin, addressed the issue in the early hours today. Among his latest tweets, he states that be careful of Fear, Uncertainty and Doubt! I’m not certain who is circulating such stories or what motives they possess. However, KuCoin has no connection to LUNA, 3AC, Babel, etc.
The Tweet also claims that there is no “huge suffering” by any “currency crisis.” No intention to block withdrawal, and everything on KuCoin is running smoothly.
Lyu went on to suggest that the exchange platform completed its $150 million financing in May 2022, boosting the firm’s worth to $10 billion. He further stated that, despite the fact that several cryptocurrency exchanges recently declared losses, KuCoin keeps growing with additional recruitment even during the current tough market situations.
Lyu also warned legal proceedings towards individuals spreading misinformation and defaming the transaction. “Being open is definitely one of our core beliefs,” he added.
The update also said that the company will shortly release their 2022 H1 review report. This will provide further information about the company’s activities. KuCoin retains the authority to conduct legal action against FUDers who knowingly publish unconfirmed information.
More Crypto Exchanges To Go Insolvent
Notably, the current chaos in the crypto industry, along with the large declines, have unmasked certain market participants. These market participants are the ones who have been using extreme leverage and are now experiencing a liquidity shortage. Perhaps several of the largest crypto financiers, such as BlockFi, are also struggling.
According to Sam Bankman-Fried, CEO of crypto exchange FTX, there are numerous similar exchanges in deeper trouble that may declare insolvency quite shortly. In these kinds of cases, traders should exercise extreme caution and verify that the cryptocurrency trading network operators with which they are connected offer sufficient accountability and coordination.