Summary:
- KuCoin CEO, Johnny Lyu, has debunked rumors that the exchange will soon pause withdrawals.
- According to Mr. Lyu, KuCoin does not have direct exposure to collapsed LUNA, Three Arrows Capital, or Babel Finance.
- He further reassures that ‘everything on KuCoin is operating well.’
The CEO of KuCoin, Johnny Lyu, has refuted claims that the crypto exchange is experiencing liquidity issues that could cause it to pause withdrawals in a manner similar to Celsius Network.
Mr. Lyu also clarified that the crypto exchange has no exposure to collapsed LUNA, Three Arrows Capital, Babel Finance, or any other crypto project undergoing financial woes due to the ongoing crypto winter. He shared his insights into the current operations at KuCoin through the following Tweet.
Be aware of FUDs!
Not sure who’s spreading these sheer rumors, and what their intentions are, but #KuCoin does not have any exposure to LUNA, 3AC, Babel, etc.
No “immense suffer” from any “coin collapse”, no plan to halt withdrawal, everything on KuCoin is operating well.
— Johnny_KuCoin (@lyu_johnny) July 2, 2022
KuCoin is Committed to Being Transparent.
KuCoin’s CEO went on to hint that the crypto exchange was financially stable given that it recently finished a $150 million funding round in May. He also pointed out that KuCoin is one of the few crypto exchanges still hiring amidst the crypto winter, and it has been more active now during the bear market by launching new features and products.
In addition, he stressed KuCoin’s commitment to continual transparency in its operations. He said:
Being transparent is always one of our key principles.
We will soon publish our 2022 H1 review report where you can know more about our operations.
For FUDers who intentionally spread unverified info, KuCoin reserves the right to take legal actions. Don’t FUD, BUIDL.
More On the Rumors that KuCoin Was Insolvent and Would Pause Withdrawals.
As mentioned earlier, KuCoin’s CEO refuted rumors circulating on crypto-twitter that the crypto exchange would soon pause withdrawals due to its exposure to some of the crypto projects and hedge funds that have collapsed as a result of the crypto market drawdown.
Crypto community member @Ninjascalp chimed in on the situation through the tweet below, questioning whether the exchange had lent Three Arrows Capital some money. He was also seeking answers about how a prominent crypto exchange such as KuCoin could go insolvent.
Can someone explain to me, how does KuCoin go insolvent?
did they lend money to 3AC or something…
I mean how do you control “billions”, see retail positions and not have delta neutral hedge… seems like exit scam to me pic.twitter.com/f1CLBv7Ced
— Ninja (@Ninjascalp) July 1, 2022
Similarly, crypto-community member @BuckleUpBrandon, questioned KuCoin CEO’s statement that everything is okay at the exchange. According to @BuckleUpBrandon, reassuring comments from executives usually preceded the reality that a crypto project is on the brink of collapse. He explained:
I don’t wanna be ‘The KuCoin FUD guy’, but for what it’s worth, literally every single platform said this before they went belly up lol. I hope KuCoin is fine so I can go back to trading there, but for now I’m not depositing funds on their exchange any time soon.