KuCoin confirms an exchange user is behind alleged daily rug pulls

Crypto speech KuCoin confirmed that the code that’s allegedly liable for launching thousands of meme coin scams belongs to 1 of its users. However, the speech volition not frost the user’s assets without immoderate authoritative announcement from instrumentality enforcement. 

On April 26, a Twitter idiosyncratic identified a wallet code that launched 2-5 meme coins regular for 2 years. Another assemblage subordinate pointed retired that the wallet addresses were “owned and controlled” by KuCoin. At the moment, blockchain explorer Etherscan has already marked the said code arsenic a fake phishing wallet.

— James Edwards (@librehash) April 27, 2023

In a connection sent to Cointelegraph, the crypto speech confirmed that the wallet code belongs to 1 of its users. According to KuCoin Johnny Lyu, portion the code does beryllium to 1 of the users of the platform, they volition not frost the relationship until they person a announcement from the applicable authorities. Lyu explained that: 

“When the reporting enactment has provided applicable ineligible documents, procedures, oregon reporting records, we volition assistance and cooperate with instrumentality enforcement agencies to instrumentality impermanent hazard power measures successful accordance with complaints and reports, idiosyncratic agreements and Seychelles laws.”

In addition, the speech told Cointelegraph that if assemblage members brushwood immoderate suspicious behavior, they indispensable study it to the constabulary and taxable the applicable materials to their team. Lyu added that they would beryllium pleased to cooperate aft receiving the required documents.

Related: KuCoin Wallet spins disconnected from KuCoin exchange, rebrands arsenic Halo Wallet

The KuCoin speech has perpetually been facing assorted challenges conscionable successful the past week. On April 24, the platform’s authoritative Twitter relationship was compromised and posted a fake activity, resulting successful immoderate of its followers losing their assets. After identifying the breach, the speech worked with Twitter to retrieve the societal media relationship and promised to reimburse the victims affected by the hack.

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