Cryptocurrency exchange KuCoin confirmed that a wallet address linked to thousands of meme coin scams that have been perpetrating rug pulls every day for almost two years belongs to one of its users.
.@CoinGurruu the wallet that you claim has launched 2-5 memecoin scams per day for the past two years is owned and controlled by @kucoincom. @etherscan has already marked this address as "Fake_Phishing179336".
— James Edwards (@librehash) April 27, 2023
However, the exchange tacitly maintains that it will not freeze the user’s assets without official notice from law enforcement.
On April 26, a Twitter user known as Guru identified a wallet address that had been launching 2-5 meme coins daily for nearly two years. This was followed by a disclosure by a Twitter user that the wallet addresses were made inside the KuCoin platform.
This wallet has launched 2-5 memecoin rugs daily for almost 2 years straight:
These devs have incredible hustle. Make sure you label it on Etherscan so you don't line their pockets with your money
Absolute insanity. pic.twitter.com/ffNQ4sTGls
— 💐Guru 💐 (@CoinGurruu) April 26, 2023
Meanwhile, Blockchain explorer Etherscan has since marked the address as a fake phishing wallet.
KuCoin’s CEO, Johnny Lyu, explained that the wallet address is associated with one of the platform’s users.
Lyu’s statement partly read that:
“When the reporting party has provided relevant legal documents, procedures, or reporting records, we will assist and cooperate with law enforcement agencies to take temporary risk control measures in accordance with complaints and reports, user agreements, and Seychelles laws.”
KuCoin further enjoined members of the crypto community to report any suspicious behaviour to the police and submit relevant materials to their team. Lyu added that they would be happy to cooperate after receiving the necessary documents.
Kucoin Faces Several Ordeals
Asian-based crypto exchange Kucoin has been battling a couple of ordeals in the past week. On April 24, the platform’s official Twitter account was compromised, leading to a fake activity being posted and some followers lost approximately $22.6K.
1/ The @kucoincom handle was compromised for about 45 mins from 00:00 Apr 24 (UTC+2). A fake activity was posted and unfortunately led to asset losses for several users. KuCoin will fully reimburse all verified asset losses caused by the social media breach and the fake activity.
— KuCoin (@kucoincom) April 24, 2023
The exchange promptly partnered with Twitter and subsequently recovered the account. It has promised to reimburse the victims affected by the hack.
Meanwhile, Kucoin is still undergoing NYAG prosecution for allegedly violating New York law by selling unregistered securities in the form of KuCoin Earn, which is related to its lending and staking product.
While the crypto exchange has not been crucified for any misdemeanor thus far, it is noteworthy that KuCoin Wallet has spun off from the KuCoin exchange and rebranded as Halo Wallet.