Kucoin Has No Plans to Halt Withdrawals According to Its CEO
- Kucoin was rumored to have suffered losses from exposure with 3AC.
- Recent market sentiment suggests that the crypto bear market might extend its run.
Amidst the ongoing collapse of several crypto platforms, Kucoin’s CEO quickly moved to refute claims that the crypto exchange had plans to halt withdrawals. The unverified news was allegedly passed on by a Twitter handle that warned investors of using the exchange, noting that Kucoin had planned to place a ban on withdrawals.
Popular crypto traders on Twitter such as @KongBTC and blockchain analyst @otteroooo also urged their readers to remove all of their funds from KuCoin. Kucoin is said to have suffered greatly from Terra (LUNA) and 3AC’s collapse.
However, KuCoin CEO, Johnny Lyu took to Twitter to dismiss such claims, adding that the exchange had a strong position and had recently received funding within the region of $150 million which placed its valuation at $10 billion in May. Lyu further stated that Kucoin was set to expand its workforce with more recruitment, which supposedly shows that all is well. He tweeted,
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. 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.
What’s Happening in the Market?
The crypto market has been heavily unstable for the past two months. Terra’s decline began the trend and soon, others such as Celsius and 3AC suffered a similar fate. 3AC, a crypto-focused hedge fund recently filed for a Chapter 15 bankruptcy which will protect the firm’s U.S. assets while the British Virgin Islands carries out the liquidation as ordered by a court.
3AC’s crisis affected other platforms such as Voyager which had to pause withdrawals after being unable to receive back its loan from 3AC. An announcement from the crypto broker’s CEO, Stephen Ehrlich read,
This was a tremendously difficult decision, but we believe it is the right one given current market conditions. This decision gives us additional time to continue exploring strategic alternatives with various interested parties while preserving the value of the Voyager platform we have built together. We will provide additional information at the appropriate time.
Voyager Digital revealed in early June that it had almost $500 million in exposure with 3AC. Following the fund’s collapse, Voyager issued a notice of default after 3AC failed to make the due payments on its previously reported loan of 15,250 BTC and $350 million USDC. In order to reduce some of this 3AC exposure, Voyager announced a credit deal with Alameda last month that included $200 million in cash and USDC, as well as a loan of 15,000 BTC. It remains to be seen if Voyager can recover its funds from 3AC.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
