2024-03-28 14:08:09
- KuCoin and its founders were found guilty of violating US federal laws.
- The exchange plans to host an airdrop event to calm investors.
In a recent turn of events, US prosecutors have charged KuCoin and its founders for allegedly violating anti-money laundering laws. The charges involve two of KuCoin’s founders, Chun Gan and Ke Tang, for violating the Bank Secrecy Act and operating a money transmission business without a license.
Furthermore, the Commodity Futures Trading Commission (CFTC) also filed a case against KuCoin for violating the Commodity Exchange Act and CFTC regulations.
In response to this, the exchange quickly to reassure users about the security of their assets.
“KuCoin is working well and our users’ assets are absolutely safe. We are aware of related reports and are currently investigating the details through our attorneys. KuCoin respects the laws and regulations of various countries and strictly adheres to compliance standards.”
Despite the calm, the value of KuCoin’s native token KCS appears to have suffered a drop and is currently trading at $12.21 after a 17.26% drop last week.
The reassuring airdrop
One day after the allegations, KuCoin CEO Johnny Lyu announced on March 27 the exchange Blog, that the exchange plans to host an airdrop event. This initiative will distribute Bitcoin and the platform’s native token, KuCoin (KCS), with a combined value of $10 million.
In response to investor concerns arising from the Confido rug-pulling incident, Lyu emphasized that the airdrop serves as a token of gratitude to loyal customers.
“Recently, on March 26 and 27, some users experienced longer than expected wait times during the withdrawal process. […] To express our deep gratitude for your support and patience, KuCoin will launch a special airdrop event totaling $10 million in KCS and BTC.”
The SEC also emphasized that while airdrops offer attractive token distribution opportunities, they also carry regulatory risks.
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This is an automatic translation of our English version.
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