The founder of the cryptocurrency exchange KuCoin denied rumors about the platform’s insolvency

With FUD (fear, uncertainty, and doubt) spreading through the crypto community over the FTX liquidity crisis, and experts predicting which platforms will be next to collapse, the founder of KuCoin has decided to publicly refute all rumors. According to Johnny Liu, KuCoin has no liquidity problems, and customer funds are securely protected.

«We are one of the largest exchanges in the world, with over 27 million users in 200 countries. Our cash reserves are stronger than ever. We have always respected the market by keeping users' funds safe and secure and will continue to do so,» Johnny Liu said in an official statement published on KuCoin’s website.

Rumors about the exchange’s insolvency increased after the analytical platform Nansen published a chart of the outflow of stablecoins from KuCoin, which, according to Liu, mistakenly showed the transfer of $ 300 million of ERC20 to TRC20, which gave reason to believe that the exchange was facing financial problems. However, the published information turned out to be a misinterpretation: «We made a lot of effort to clarify with Nansen that it was a transfer of ERC20 USDT to TRC20 USDT. The analysts recognized that they only track ERC20 tokens, and therefore the TRC20 USDT transfer was not reflected and was misinterpreted as an outflow.»

KuCoin’s CEO promised users to «never misappropriate their funds and ensure full transparency» to avoid a repeat of the FTX story. Just a day after the Binance-prydbaye-kryptobirzhu-ftx/" data-wpel-link="internal">announcement of the acquisition, Binance refused to acquire FTX. The company stated that it was unable to solve the problems on the platform. «Initially,we hoped to be able to support FTX users and provide the necessary liquidity.However, the exchange’s problems were beyond our control and we are unable to help,» Binance said in an official statement.