Such a large cash flow was withdrawn from the exchange, causing panic among investors who kept money on Kucoin or traders on the platform.
On-chain data tracker nicknamed Beetle said:
all 14 kucoin labeled wallets went from $1.8b to $10m in a day. their ETH stack remains and rn only holding MATIC, NMR, and LEND— beetle (@1kbeetlejuice) July 4, 2022
anyone else following this?? https://t.co/usoBkvvDme pic.twitter.com/nZDbYyeve5
Earlier, the CEO of the exchange posted an article stating that all users' funds are safe, while also speaking out about the FUD going on around an exchange that is alleged to be risky. risk with client funds, similar 3AC was recently liquidated. Fortunately, the Kucoin CEO denied all those rumors, telling everyone that the exchange is still “doing well.”
At the present time, all withdrawals and other operations on the exchange are operating as usual and no warnings have been issued. There have also been no reports of withdrawals being refused or holdings without user consent.
Why did the big withdrawal happen?
There is still no official explanation behind the unusual activities that have come to the attention of the community. WhaleAlert detected a transaction worth $80 million from KuCoin's official wallet to an "unknown wallet". The CEO reassured users by saying it was a cold wallet transfer and that customer funds were still being protected.
The increased activity of exchange-related wallets can be attributed to FUD investors and the community withdrawing large amounts of funds from the exchange.