Analyzing the situation in the cryptocurrency market, analysts at CryptoQuant claim that the exchange KuCoin has suffered significant losses, having lost over 77% of its Bitcoin reserves. According to their data, this occurred following the announcement of a mandatory KYC procedure that was implemented on June 28, 2023.
This is reported by Business • Media
Loss of KuCoin’s Bitcoin Reserves
CryptoQuant experts noted that since the introduction of KYC, the exchange has lost 14,200 BTC, reducing its reserves from 18,300 BTC to 4,100 BTC. This decrease represents 77.6% of the total reserve volume. Analysts point out that such a drop is particularly sharp compared to other centralized exchanges, where a general decline in reserves has been observed over a longer period.
“While a long-term decrease in Bitcoin reserves on centralized exchanges is seen across the industry, the situation with KuCoin is exceptionally sharp. The timing and scale of this outflow are closely related to the implementation of the mandatory KYC procedure,” the analysts noted.
KuCoin’s Denial of Information
However, the KuCoin team has denied this data, emphasizing that the information provided by CryptoQuant is incorrect and misleading. Representatives of the exchange stressed that the company maintains significant Bitcoin reserves, and the figures cited in the reports do not reflect the actual state of their assets.
It is also worth noting that at the end of April 2025, Peken Global, the company managing KuCoin, acknowledged its guilt in conducting unlicensed money transfer business in the U.S. and agreed to pay a fine of $300 million.