KuCoin has pushed again towards claims suggesting it misplaced over 77% of its Bitcoin reserves since 2023.
The crypto trade labeled the circulating figures deceptive and inaccurate, emphasizing its dedication to transparency and accountable reporting.
KuCoin’s falling Bitcoin reserves?
The controversy stems from a report by Onchain Faculty, a data-focused platform citing knowledge from CryptoQuant.
In accordance with their findings, KuCoin’s Bitcoin holdings reportedly fell from 18,300 BTC in June 2023 to roughly 4,100 BTC by April 2025.
The evaluation attributes this steep drop, which quantities to round 14,200 BTC, to KuCoin’s introduction of obligatory know-your-customer (KYC) guidelines in mid-2023.
The KYC coverage, which took impact in August 2023, required all customers to finish identification verification. On the time, KuCoin acknowledged the transfer was essential to fight felony exercise equivalent to cash laundering and terrorism financing.
Onchain Faculty recommended this compliance push prompted customers to withdraw funds, citing privateness considerations.
The analytics platform additionally claimed KuCoin’s state of affairs displays a broader development of declining Bitcoin reserves throughout centralized exchanges. Nevertheless, it careworn that KuCoin’s case was notably extra extreme as a result of its timing and scale.
KuCoin releases proof-of-reserve
KuCoin rejected the findings and expressed concern over what it described as irresponsible reporting.
The trade acknowledged that the reported numbers don’t replicate its reserve ranges and warned that incorrect knowledge may erode public confidence.
The agency acknowledged:
“We’re involved concerning the unfold of false or deceptive data by some platforms. Irresponsible reporting misleads customers and undermines belief within the crypto ecosystem.”
To bolster its place, the trade shared its thirtieth Proof of Reserves, which confirmed that it held a 106% Bitcoin reserve ratio. This consists of about 9,751 BTC in person funds and 10,306 BTC in exchange-controlled wallets.
The report additionally confirmed reserve protection of 116% for Ethereum, 114% for USDT, and 109% for USDC.
