Cryptocurrency exchange KuCoin is under renewed scrutiny after blockchain investigator ZachXBT made new allegations. According to ZachXBT, some deposit addresses allegedly linked to KuCoin were used in a $250 thousand crypto theft tied to the malicious software, Atomic Stealer, on August 18, 2025.
Deposit addresses at the heart of the controversy
In research shared via Telegram, ZachXBT pinpointed one wallet involved in the theft and identified five deposit addresses he claims are tied to KuCoin. He suggested that purchased intermediary KYC (Know Your Customer) verification might have been used on these accounts, where personal identification was acquired from third parties. However, these claims have not been independently verified in court or acknowledged in any official KuCoin statement.
Mini glossary: KYC is the customer identification process required by financial platforms. AML refers to regulatory controls to prevent money laundering.
The documents shared by ZachXBT also include a message reportedly from KuCoin Customer Service and Support Team. The message stresses that users have the right to legal and regulatory recourse but warns that false or unlawful claims could themselves be subject to legal action.
The message attributed to KuCoin emphasizes respect for users’ right to legal recourse, yet cautions that unfounded or unlawful statements can trigger legal consequences.
Social media turns up the heat
The debate broadened after crypto community member DNBWIZARD posted screenshots about the case on the X platform. DNBWIZARD accused KuCoin of threatening legal action. KuCoin has not issued a public response, nor has it confirmed the authenticity of the circulated message.
KuCoin has long operated as a major global centralized crypto exchange. The company was already in headlines earlier in 2025 due to its involvement in a legal case in the United States.
Spotlight returns to US legal battles
The US Department of Justice revealed in January 2025 that KuCoin admitted to unlicensed money transmission and agreed to pay penalties exceeding $297 million. Prosecutors allege KuCoin’s lack of robust AML and KYC controls enabled suspicious transactions to pass through its platform.
This emerged following criminal charges brought against KuCoin and two of its founders in March 2024. Authorities argued the exchange had processed billions of dollars in suspicious and illicit funds between 2017 and 2024.
| Issue | Date | Details |
|---|---|---|
| New theft allegation | August 18, 2025 | $250 thousand lost, 5 addresses allegedly linked to KuCoin |
| US settlement | January 2025 | Penalty exceeding $297 million |
| First wave of charges | March 2024 | Alleged suspicious fund flows from 2017 to 2024 |
Echoes of earlier investigations
The new claims draw parallels with previous cases, where stolen crypto assets have been traced through KuCoin deposit addresses. Earlier this year, ZachXBT revealed that a fake Ledger Live app was used to steal at least $9.5 million from over 50 victims, with more than 150 KuCoin deposit addresses cited in the laundering of those assets.
ZachXBT previously stated that in the fake Ledger Live app theft of at least $9.5 million, the funds were traced through over 150 KuCoin-linked deposit addresses.
In a separate probe, assets allegedly stolen by an entity identified as AudiA6 also ended up in KuCoin-associated addresses. According to ZachXBT, recovering such funds typically requires coordination between law enforcement and crypto exchanges.
At the close of 2025, KuCoin expanded its regulatory footprint in Europe by securing a MiCA license via its Austrian subsidiary. However, Austrian regulators later barred the subsidiary from onboarding new clients due to compliance staffing concerns.
