CEO Reacts To Insolvency Claims

In the recent times, KuCoin CEO Johnny Lyu found himself facing rumors about the exchange. Earlier this month, rumor had it that the exchange would halt withdrawals on their platform owing to heavy losses from the LUNA collapse. In a latest, similar speculation is making rounds around the stability of KuCoin. In a blog post, Lyu detailed the company’s current position with respect to its financial status.

Rumors About KuCoin Going Insolvent

In a tweet on Saturday, otterooo, an account that tweets about developments in crypto, made a sensational prediction. They said KuCoin is going insolvent, as per insider information. The crypto exchange may not have the assets to meet redemptions of depositors, they added hinting at Kucoin insolvency. Reacting to this, Lyu refuted claims that his company suffered losses due to the Terra meltdown. The KuCoin CEO clarified that a majority of funds in KuCoin wallets do not belong to the exchange but to the users.

“It is our responsibility to keep them secure and make sure users can always withdraw in full whenever they want. Having a LUNC wallet does not necessarily mean KuCoin as a company is holding lots of LUNC tokens, and I’m sure the difference is obvious.”

‘Logical Errors’ In So-Called Kucoin Insolvency Rumors

Perhaps referring to claims of KuCoin becoming insolvent, Lyu said there were many logic errors in the “so-called KuCoin employee whistleblows.” KuCoin does not have any exposure to LUNA and wLUNA, he added. The CEO said KuCoin has lately been facing rumors originating from two ways, those made both unknowingly or intentionally.

Earlier this month, KuCoin rubbished claims that the company was about to halt withdrawals thanks to heavy losses incurred due to Terra collpase. KuCoin does not have any exposure to LUNA, 3AC or Babel, he clarified. At the time, Lyu threatened legal action against those trying to spread FUD and maligning the exchange.

Anvesh reports major developments around crypto adoption and price analysis. Having been associated with the industry since 2016, Anvesh is a strong advocate of decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

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