Cryptocurrency exchange KuCoin has completely refuted rumors that suggested that them halting withdrawals on their platform owing to heavy losses suffered due to the LUNA collapse.
Johnny Lyu, the CEO of KuCoin has come out clean on the matter earlier today. In one of his recent tweets, Lyu wrote:
Be aware of FUDs! Not sure who’s spreading these sheer rumors, and what their intentions are, but KuCoin does not have any exposure to LUNA, 3AC, Babel, etc. No “immense suffer” from any “coin collapse”, no plan to halt withdrawal, everything on KuCoin is operating well.
Instilling confidence among KuCoin users, Lyu further explained that the crypto exchange recently finished its $150 million fundraising in May 2022 taking the company valuation to $10 billion. He also added that while many crypto exchanges have announced layoffs, KuCoin continues to grow with more hiring even in these critical market conditions.
Lyu has further threatened legal actions against those trying to spread the FUD and maligning the exchange. He wrote: “Being transparent is always one of our key principles. We will soon publish our 2022 H1 review report where you can know more about our operations. For FUDers who intentionally spread unverified info, KuCoin reserves the right to take legal actions. Don’t FUD, BUIDL”.
The Trouble with Crypto Exchanges
Well, the recent mayhem in the crypto space and heavy corrections has exposed some of the market players who have been taking excessive leverage and facing a liquidity crunch. Even some of the biggest crypto lenders like BlockFi have been facing dire conditions.
Sam Bankman-Fried, CEO of crypto exchange FTX said that there are many such exchanges under deep water that might announce insolvencies very soon. In such times, investors should maintain utmost prudence and ensure that there’s proper communication and transparency from the crypto exchange service providers they are associated with.