The cryptocurrency exchange KuCoin and its two founders have faced a series of investigations and lawsuits, which have fueled investors’ concerns about the exchange. The investigation into the exchange was followed by significant withdrawals by investors, which was another notable point. We had previously reported on some of these withdrawals and shared the data. Later data revealed that the withdrawals were not limited to these.
Withdrawals Continue at the Cryptocurrency Exchange
Following the indictment against the company, cryptocurrency investors struck a major blow by moving $208 million worth of crypto out of KuCoin. According to data provided by the blockchain analysis platform Nansen, the exchange experienced an outflow of $99 million in Ethereum (ETH) and $108 million worth of Ethereum Virtual Machine (EVM) assets.
Nansen reports that KuCoin currently appears to have over $6 billion in assets across networks such as Ethereum, Bitcoin (BTC), Solana (SOL), and other networks.
According to a report that emerged on Tuesday, the US Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) announced that they have filed an indictment against KuCoin and its two founders, Chun Gan and Ke Tang.
In the DOJ’s statement, it is alleged that these founders of the exchange operated an unlicensed money transfer business and did not maintain an adequate anti-money laundering (AML) program. Authorities also claim that the exchange conducted over $5 billion in transactions focused on suspicious and criminal proceeds.
Special Agent Darren McCormack from the Homeland Security Investigations (HSI) New York Field Office described KuCoin as a billion-dollar criminal scheme.
KuCoin grew to serve over 30 million customers despite allegations that it failed to comply with laws essential for the security and stability of the world’s digital banking infrastructure. The allegations that the defendants violated these vital laws have finally come to an end.
What is the Price of Ethereum?
While all this was happening, looking at the price of Ethereum that was withdrawn from the exchange, it was trading at $3,601 after a 2.88% increase at the time of writing.
On the other hand, there was a 3.5% increase in the 24-hour trading volume, reaching a value of $18.6 billion. This 24-hour trading volume increase in Ethereum could be interpreted as a sign of growing investor interest.
