KuCoin vs DoJ. Clearly, the regulatory management of the cryptocurrency sector is starting to resemble a racketeering campaign in large scale. Indeed, the various procedures initiated, for reasons as variable as they are doubtful, always end up a fine set in billions of dollars. An impression largely supported by the duel of regulators which hits the Wild West of the US regulatory sector. Because the goal is to know which institution will be the Sheriff of this digital economy now adopted by traditional finance. A turf war at the center of which the KuCoin platform – and two of its founders – have just been subpoenaed by the United States justice system. Result : 800 million dollars move from this exchange in less than 24 hours.
KuCoin in the sights of US justice
The information fell yesterday late in the afternoon like a cleaver on the centralized sector (CEX) of cryptocurrencies. After the 4.3 billion dollars claimed from the Binance platform to close his case, it is the turn of sa concurrent KuCoin to find themselves under fire from US regulators.
Almost an indictment copied/pasted by the United States Department of Justice in charge of this file. Indeed, KuCoin is mainly accused of having “deliberately sought to conceal the fact that a significant number of American users were trading on [sa] platform. » Mainly in question, a lack of KYC found guilty…
The KuCoin platform is targeted by US legal proceedings.
“KuCoin has reportedly leveraged its large US customer base to become one of the largest cryptocurrency derivatives and spot exchanges in the world, with billions of dollars in daily transactions and billions of dollars in trading volume. annual exchanges. But, financial institutions like KuCoin that take advantage of the unique opportunities available in the United States must also comply with U.S. law to help identify and chase down crime and corrupt financing schemes. KuCoin would have deliberately chosen not to do this. »
Damian Williamsprosecutor in charge of this case
From this simple fact, the KuCoin platform and its two founders are accused of having allowed the laundering of more than 9 billion dollars.
800 million dollars moved in less than 24 hours
It therefore seems that the most reliable way to determine the best current crypto platforms or to wait for the classification by charge from the US regulatory authorities. However, it is more of a massive capital flight which is currently hitting KuCoin. Indeed, 800 million dollars have already left this exchange in the last 24 hours.
An certainly significant amount that the CryptoQuant analysis structure nevertheless attempts to put into perspective on the X network. Because, according to its founder and CEO Ki Young Ju, these sorties simply have “ a slight impact on the overall reserve » of the exchange.
An exercise in return to calm also led by Kucoin CEO Johny Lyu on the X network:
“The challenge we face is not unique to KuCoin but rather typical growth and regulatory issues faced by emerging industries. Early stages of development often have regulatory gaps, but as the industry matures, we move toward and embrace compliance and standardization. »
At the same time, KuCoin’s native cryptocurrency KCS records a notable drop of 14% over the last 24 hours. And the United States CFTC take advantage of this cacophony to assert that Litecoin (LTC) and Ethereum are goods in the same way as Bitcoin. Because, the legal proceedings carried out against platforms and other crypto projects most of the time hide more obscure regulatory issues. A case to follow…