Crypto withdrawals from KuCoin reach $1B amid U.S. regulatory clampdown

According to Nansen data, KuCoin saw withdrawals above $1 billion in the last 24 hours. As per the statistics provided by the Arkham blockchain, the exchange's holdings decreased from $6 billion to $4.8 billion. The exchange "is operating well, and the assets of our users are absolutely safe," KuCoin stated. 

Data from Nansen and Arkham Intelligence showed that when the trading platform KuCoin faced charges from U.S. authorities, the exchange witnessed a 20% drop in assets under management (AUM) and a $1 billion drop in crypto withdrawals in the last 24 hours.

During that time, the exchange saw withdrawals of $1.083 billion through EVM-compatible networks, while inflows were only $144 million. The data collected by Nansen did not cover withdrawals of bitcoin {{BTC}}. As per Nansen's reporting, the net outflow on the Ethereum network amounted to $840 million.

Arkham Intelligence's blockchain data reveals that tagged KuCoin crypto addresses' holdings of crypto assets (including BTC) reduced from $6 billion on Tuesday to $4.8 billion.

Even if Arkham's statement takes price movements into account, the crypto markets were mostly unchanged throughout that time, therefore the drop was probably due to investors pulling their money out of the platform.

The exchange and two of its founders were accused on Tuesday by U.S. federal prosecutors with breaking anti-money laundering regulations, which coincided with the rise in withdrawals. An agent specialising in investigations into matters of national security characterized the deal as "an alleged multibillion-dollar criminal conspiracy."

Worries over the exchange's stability arose when some users reported delays in withdrawals. But according to blockchain statistics, KuCoin outgoing transactions were processed, and the holdups were probably caused by pent-up withdrawal demands.

As KuCoin put it in a social media statement, the exchange "is operating well, and the assets of our users are absolutely safe."

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