KuCoin showcases proof-of-reserve data to counter claims of significant Bitcoin depletion.
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KuCoin has pushed back against claims suggesting it lost over 77% of its Bitcoin reserves since 2023.
The crypto exchange labeled the circulating figures misleading and inaccurate, emphasizing its commitment to transparency and responsible reporting.
The controversy stems from a report by Onchain School, a data-focused platform citing data from CryptoQuant.
According to their findings, KuCoin’s Bitcoin holdings reportedly fell from 18,300 BTC in June 2023 to roughly 4,100 BTC by April 2025.
The analysis attributes this steep drop, which amounts to around 14,200 BTC, to KuCoin’s introduction of mandatory know-your-customer (KYC) rules in mid-2023.
The KYC policy, which took effect in August 2023, required all users to complete identity verification. At the time, KuCoin stated the move was necessary to combat criminal activity such as money laundering and terrorism financing.
Onchain School suggested this compliance push prompted users to withdraw funds, citing privacy concerns.
The analytics platform also claimed KuCoin’s situation reflects a broader trend of declining Bitcoin reserves across centralized exchanges. However, it stressed that KuCoin’s case was notably more severe due to its timing and scale.
KuCoin rejected the findings and expressed concern over what it described as irresponsible reporting.
The exchange stated that the reported numbers do not reflect its reserve levels and warned that inaccurate data could erode public confidence.
The firm stated:
“We’re concerned about the spread of false or misleading information by some platforms. Irresponsible reporting misleads users and undermines trust in the crypto ecosystem.”
To reinforce its position, the exchange shared its 30th Proof of Reserves, which showed that it held a 106% Bitcoin reserve ratio. This includes about 9,751 BTC in user funds and 10,306 BTC in exchange-controlled wallets.
The report also showed reserve coverage of 116% for Ethereum, 114% for USDT, and 109% for USDC.
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