7th May 2025 – (Victoria, Seychelles) Kucoin has strongly refuted claims that it has lost over 77% of its bitcoin (BTC) reserves since the introduction of mandatory know your customer (KYC) measures on 28th June, 2023. The cryptocurrency exchange described the data published by Cryptoquant as “factually incorrect and highly misleading.”
The controversy arose after a report from a Cryptoquant author, known as “Onchainschool,” suggested that Kucoin’s holdings had plummeted from 18,300 BTC on June 28 to approximately 4,100 BTC. The report attributed the decline to concerns surrounding KYC regulations, which began circulating on June 5, 2023.
While acknowledging a general trend of decreasing BTC reserves across centralised exchanges (CEXs), the Cryptoquant author stated that Kucoin’s situation was particularly severe, correlating the timing and extent of the outflow with the enforcement of KYC measures. The analysis indicated that users remain highly sensitive to compliance changes, especially regarding privacy.
In response, Kucoin cautioned against the spread of information that could undermine market confidence in digital asset platforms. “We are deeply concerned by the publication of such unverified claims and urge Cryptoquant to act responsibly and exercise greater diligence when sharing data that may impact market trust,” the exchange commented.
Kucoin also directed users to its official proof of reserves (POR) page for verification of its BTC holdings. According to the POR, as of April 30, 2025, Kucoin’s reserves were overcollateralised, with a BTC reserve ratio of 106% and an ETH reserve ratio of 116%.
© 2021 DimSum Daily. ALL RIGHTS RESERVED.
© 2021 DimSum Daily. ALL RIGHTS RESERVED.
