KuCoin Withdrawals Spike to $1B in Crypto Amid U.S. Regulatory Clampdown

The surge occurred as U.S. federal prosecutors charged the exchange and two of its founders with violating anti-money laundering laws on Tuesday.

AccessTimeIconMar 27, 2024 at 1:54 p.m. UTC
Updated Mar 27, 2024 at 1:56 p.m. UTC
  • KuCoin saw over $1 billion in withdrawals over the past 24 hours, Nansen data shows.
  • Assets held by the exchange dropped to $4.8 billion from $6 billion, according to Arkham blockchain data.
  • The exchange "is operating well, and the assets of our users are absolutely safe," KuCoin said.

Crypto exchange KuCoin saw about $1 billion in crypto withdrawals over the past 24 hours and assets under management (AUM) slumped 20% as the trading platform faced charges from U.S. authorities, data from Nansen and Arkham Intelligence shows.

The exchange experienced $1.083 billion in outflows via Ethereum Virtual Machine-compatible (EVM) chains during the period, and only $144 million of inflows. Nansen data did not include bitcoin (BTC) withdrawals. Net outflows on the Ethereum network reached $840 million, according to Nansen.

"This is more than a 15% drop in assets held by the exchange," Nansen said in an X post Wednesday.

Blockchain data from Arkham Intelligence shows that the amount of crypto assets (including BTC) held by tagged KuCoin crypto addresses plummeted to $4.8 billion from $6 billion on Tuesday. Arkham's figure includes price fluctuations, but crypto markets were generally little changed over the period, so the decrease was most likely a result of investors withdrawing assets from the platform.

KuCoin crypto holdings as of Wednesday 12:30 UTC (Arkham Intelligence)
KuCoin crypto holdings as of Wednesday 12:30 UTC (Arkham Intelligence)

The withdrawal surge happened as the exchange and two of its founders were charged Tuesday with violating anti-money laundering laws by U.S. federal prosecutors. A Homeland Security Investigations Special Agent called the exchange "an alleged multibillion-dollar criminal conspiracy."

Some users complained about delays in withdrawals, spurring concerns about the exchange's health. Blockchain data, however, showed that outgoing transactions from KuCoin were processed, with the delays most likely due to the pent-up withdrawal requests.

KuCoin said in a social media post that the exchange "is operating well, and the assets of our users are absolutely safe."

Edited by Sheldon Reback.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Krisztian  Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.