Cryptocurrency exchange KuCoin has completely refuted rumors that suggested it was halting withdrawals on its platform due to heavy losses suffered following the collapse of LUNA.
Johnny Lyu, the CEO of KuCoin, spoke clearly on the matter earlier today. In one of his recent tweets, lyu wrote :
Watch out for FUDs! I don’t know who is spreading these rumors and what their intentions are, but KuCoin has no exposure to LUNA, 3AC, Babel, etc. No “tremendous suffering” due to any “currency collapse”, no plans to stop withdrawals, everything works fine on KuCoin.
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 “tremendous suffer” from any “coin collapse”, no plan to halt withdrawal, everything on KuCoin is operating well.
— Johnny_KuCoin (@lyu_johnny) July 2, 2022
Instilling confidence among KuCoin users, Johnny Lyu went on to explain that the cryptocurrency exchange recently completed its $150 million fundraising round in May 2022, bringing the company’s valuation to $10 billion. He also added that while many cryptocurrency exchanges announced layoffs, KuCoin continues to grow by hiring more, even in these critical market conditions.
Johnny Lyu also threatened to take legal action against those trying to spread confusion and denigrate the stock market. He wrote : “Being transparent is always one of our key principles. We will soon publish our report on the first half of 2022, which will allow you to learn more about our operations. For those who intentionally disseminate unverified information, KuCoin reserves the right to take legal action. Do not FUD, BUIDL“.
The problem with cryptocurrency exchanges
The recent chaos in the crypto space and heavy corrections have exposed some of the market participants who have taken on excessive leverage and are facing a shortage of liquidity. Even some of the biggest crypto lenders like BlockFi have faced dire terms.
Sam Bankman-Fried, CEO of cryptocurrency exchange FTX, said there are plenty of exchanges that could announce bankruptcies very soon. In such circumstances, investors should exercise utmost caution and ensure communication and transparency from the crypto exchange service providers they are associated with.