CEO of CryptoQuant Ki Young Ju has expressed his opinion on the situation with the cryptocurrency exchange KuCoin, comparing it to the collapse of FTX, but concluded that KuCoin is unlikely to face a similar fate. After a legal audit, KuCoin encountered regulatory issues, however, according to Ju, the exchange has sufficient reserves to process fund withdrawals, especially in Bitcoin (BTC) and Ethereum (ETH). Despite an increase in withdrawal requests, mainly from retail users, KuCoin's overall reserve remains stable.

Ju emphasized that KuCoin does not commingle client funds with its own and demonstrates organic reserves, unlike FTX's practices. He also noted that KuCoin has over 100,000 ETH and over 7,000 BTC in reserve, ensuring smooth fund withdrawals. Recent data shows that KuCoin has experienced significant net outflows, but despite this, the exchange's hot wallets maintain a substantial reserve exceeding $3.6 billion on the Ethereum network.

The US Department of Justice has accused KuCoin and its co-founders of violating several laws in an effort to turn the platform into one of the largest in the crypto industry. The charges include operating an unlicensed money transmission business and violating the Bank Secrecy Act. Despite these accusations, KuCoin continues to serve over 30 million customers, underscoring the importance of compliance with the law to ensure the safety and stability of the global digital financial infrastructure.