Cover image via U.Today

According to blockchain analytics platform Spot On Chain, KuCoin faced approximately $500 million in withdrawals shortly after receiving criminal charges from the U.S. government.

KuCoin lost significant amounts, including $274 million in Tether (USDT), $55 million in Ethereum (ETH), and $46 million in Ondo (ONDO), among others.

Despite the large withdrawals, the exchange still holds around $3.6 billion in cryptocurrencies in its hot wallets.

KuCoin, along with founders Chun Gan and Ke Tang, are being charged with breaching the Bank Secrecy Act and enabling money laundering on their platform.

The exchange has been accused of providing misleading information about its user base and operating without necessary approvals in the U.S., despite having a significant number of American users.

Jake Chervinsky, chief legal officer at Variant, has commented that the legal action taken against KuCoin is not unexpected given previous enforcement actions in the U.S. He emphasized the importance of complying with U.S. laws to access the market.

KuCoin has reassured its users that their assets are secure, and the exchange's legal team is investigating the charges brought by the Department of Justice.

Acknowledging delays in withdrawals due to high transaction volume, KuCoin remains confident in weathering its legal challenges.