Crypto Exchange KuCoin Addresses Rumors of Accused Insolvency
KuCoin CEO Johnny Lyu has addressed rumors that the exchange is on the verge of bankruptcy and will suspend withdrawals in the coming days.
The rumor emerged through a tweet from the now-deleted Otteroooo Twitter account on July 23, with the Otteroooo account claiming to have access to insider information pointing to the bankruptcy of the crypto exchange.
The content of the tweet said that The trading platform does not have enough funds to withdraw the users’ funds.
However, Mr Lyu denied the rumors and said it was nonsense. He explained that KuCoin’s team tried to clarify the information with Otterooo, but the account holder still ignored it and tried to spread the FUD news.
KuCoin’s blog revealed the communication between KuCoin and Otteroooo, mainly about wLUNA and LUNA.
The CEO said that KuCoin did not interfere with LUNA and explained that all LUNA in the wallet belonged to the user.
“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.”
This isn’t the first time KuCoin’s bankruptcy rumors have surfaced, as earlier this month there were also rumors – mainly due to the collapse of Project Terra.
The CEO has denied the rumors and said the exchange did not interfere with Babel and Three Arrows Capital. He also threatened to sue those who spread FUD-related news.
It wasn’t just Mr. Lyu who questioned Otterooo’s credibility, another Twitter user named FatmanTerra thought the rumor was not true.
— smolting (wassie, verse) (@inversebrah) July 23, 2022
This is not Otteroooo’s first accusation that has turned out to be shady. Crypto lender and exchange Nexo published an expose on the account, revealing its tactics for spreading FUD.
