KuCoin, a popular cryptocurrency exchange, has confirmed that one of its users is allegedly behind the launch of several meme coin rug pulls daily for almost two years. The confirmation came after a Twitter user identified a wallet address that launched 2-5 meme coins every day for two years. Another community member highlighted that the wallet addresses were under the ownership and control of KuCoin.
While the blockchain explorer Etherscan has marked the wallet address as a fake phishing wallet, KuCoin has refused to freeze the user’s assets without any official notice from law enforcement. However, KuCoin’s Johnny Lyu stated that they will only provide temporary risk control measures after receiving pertinent legal documents, procedures, or reporting records, and will collaborate with law enforcement agencies in the process.
KuCoin has also urged community members to report suspicious behaviour to the police and submit relevant materials to their team. Lyu added that they would happily cooperate after receiving the required documents. This is one of many challenges KuCoin has faced in recent times.
On April 24, the exchange’s official Twitter account was compromised, resulting in some of its followers losing their assets. The exchange has promised to reimburse the victims affected by the hack and has since recovered the social media account.
The news of KuCoin’s user being allegedly involved in daily rug pulls has caused concern among the crypto community. Some have criticized KuCoin for not breaching the user’s assets, while others have praised the exchange for following legal procedures. Nevertheless, the incident highlights the need for greater regulation and monitoring of the cryptocurrency space to prevent fraudulent activities.
