KuCoin Denies Rumors About Its Possible Insolvency Crisis

Kucoin

✍️ 26 July, 2022 - 13:59 👤 Editor: Jakub Motyka

  • CEO of KuCoin asks his community not to fall into the FUD around his operations.
  • A Twitter user assures that the exchange is insolvent, however, his account was subsequently deleted.
  • It is not the first crypto company that has had to face this type of campaign in recent weeks.

Johnny Lyu, CEO of KuCoin, has responded forcefully to rumors of the exchange's alleged insolvency. A now-deleted Twitter account of a user named Otteroooo has signed to have access to exchange insiders, which was preparing to suspend withdrawals in the coming days. However, the platform community pointed out that it was FUD and questioned the credibility of its sources.

This is not the first scare campaign to emerge regarding exchange insolvency. In early July, there were several rumors about the losses caused by the fall of Terra to KuCoin. On this, Lyu assured that the platform was not exposed to Babel, Three Arrows Capital or the Terra ecosystem.

What Has Been KuCoin's Response To The Rumors Of Its Insolvency?

According to user Otteroooo's accusations, KuCoin does not have enough funds to refund its customers' money. On this, Lyu has debunked the rumors and marked them as ridiculous. He assured that the exchange team tried to clarify the situation with Otteroooo, but it was not possible to reach an understanding.

Subsequently, the entire conversation was published between the CEO of KuCoin and Otteroooo, where they mainly talked about wLUNA and the exchange's exposure to it. Lyu claimed that all the LUNA inside their wallets belonged to the users. He noted that “it is our responsibility to keep them safe and make sure that users can always withdraw completely when they want. Having a LUNC wallet does not necessarily mean that KuCoin as a company has a lot of LUNC tokens, and I'm sure the difference is obvious.”

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