KuCoin Denies About the Rumors Of Insolvency. The crypto exchange KuCoin has once again been involved in rumors of being insolvent and unable to meet redemptions of depositors this month, the CEO has since heavily denied them.
On July 23rd, Twitter user @otteroooo posted a now deleted thread, claimed to have insider information saying that ‘ex-employees and whistleblowers have confirmed that KuCoin is insolvent and have an estimated $500,000,000 hole in their balance.’
CEO of KuCoin, Johnny Lyu, has since then posted on his blog, debunking these rumors as ridiculous and untrue. He explains that he and @otteroooo have talked first-hand about the issue, with the KuCoin team trying to clarify the misunderstandings with the Twitter user. However, Otteroooo was said to have continued to ignore the facts and spread FUDs.
Please see below our response to some noises.
— Johnny_KuCoin (@lyu_johnny) July 23, 2022
Lyu clarified that a lot of the rumors were ‘illogical’, explaining that KuCoin does not have any exposure to LUNA and wLUNA and ensuring that all the LUNA in its wallets belonged to users.
“It is our responsibility to keep them secure and make sure users can always withdraw in full whenever they want. Having a LUNC wallet does not necessarily mean KuCoin as a company is holding lots of LUNC tokens, and I’m sure the difference is obvious.” Lyu stated.
Not The First Rumor
This isn’t the first time KuCoin was hit with rumors of insolvency this year. Just earlier this month there were also rumors around KuCoin being insolvent due to heavy losses from the Terra collapse.
Lyu also denied those rumors from earlier this month, claimming that KuCoin does not have any exposure to LUNA, 3AC or Babel. He had also threatened legal action against those trying to spread FUD about the exchange.