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KuCoin Confirms Fake Meme Coin Perpetrator is a Platform User

KuCoin Confirms Fake Meme Coin Perpetrator is a Platform User

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.

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.

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

The scam took advantage of the sudden adoption of crypto to rip people off

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.

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.

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