KuCoin, a popular cryptocurrency exchange, has recently confirmed that one of its users is allegedly behind the launch of several meme coin rug pulls daily for almost two years. This confirmation comes after a Twitter user identified a wallet address that launched 2-5 meme coins daily for two years. Furthermore, it was highlighted that the wallet addresses were under the ownership and control of KuCoin.
.@CoinGurruu the wallet that you claim has launched 2-5 memecoin scams per day for the past two years is owned and controlled by @kucoincom. @etherscan has already marked this address as "Fake_Phishing179336".
— James Edwards (@librehash) April 27, 2023
Response to Allegations
Although the blockchain explorer Etherscan has marked the wallet address as a fake phishing wallet, KuCoin has refused to freeze the user’s assets without any official notice from law enforcement. However, Johnny Lyu, CEO of KuCoin, stated that they will only provide temporary risk control measures after receiving pertinent legal documents, procedures, or reporting records and will collaborate with law enforcement agencies in the process.
“When the reporting party has provided relevant legal documents, procedures, or reporting records, we will assist and cooperate with law enforcement agencies to take temporary risk control measures in accordance with complaints and reports, user agreements and Seychelles laws.”
In addition, KuCoin has urged community members to report suspicious behavior to the police and submit relevant materials to their team. Lyu added that they would happily cooperate after receiving the required documents. This stance has led to criticism and praise from the crypto community, with some stating that KuCoin should have frozen the user’s assets immediately, while others applaud their adherence to legal procedures.
This is not the first challenge KuCoin has faced recently. The exchange’s official Twitter account being compromised on April 24 resulted in some of its followers losing their assets. The exchange has promised to reimburse the victims affected by the hack and has since recovered the social media account.
The news of KuCoin’s user being allegedly involved in daily rug pulls has caused concern among the crypto community. This incident highlights the need for greater regulation and monitoring of the cryptocurrency space to prevent fraudulent activities. The lack of regulation in the crypto space has allowed for scams and fraud to occur, causing financial losses for individuals and damaging the reputation of the industry.