New KuCoin Airdrop Worth $10 Million Was Announced Amid Legal Storms

Key Points:

• KuCoin airdrop worth $10 million in Bitcoin and its native KCS token will be launched following DOJ charges against the exchange and its founders.
• CEO Johnny Lyu expresses gratitude to users amidst regulatory concerns.
• There were capital outflows of $1.78 billion from KuCoin’s Ethereum and EVM chains and a significant drop in the price of KCS.

Cryptocurrency exchange KuCoin announced plans for an airdrop worth $10 million in Bitcoin and its native KuCoin (KCS) token, as revealed in a letter from CEO Johnny Lyu.

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KuCoin Airdrop Will Distribute $10 Million Amidst Legal Turmoil

This announcement follows the United States Justice Department’s charges against the exchange and its two founders. Despite not addressing the charges, Lyu thanked users for their support during recent events.

Details of the KuCoin airdrop will be disclosed within three days, with the exchange also intending to reward loyal users who remain with the platform. The decision to proceed with the KuCoin airdrop follows increased withdrawal volumes and customer concerns. However, regulatory risks loom as the Securities and Exchange Commission (SEC) considers airdrops potentially falling under securities regulations.

Following the news of the charges, KuCoin saw a significant capital outflow of $1.78 billion from its Ethereum and EVM chains, representing a 15% decrease in assets, as reported by Nansen data.

Allegations Trigger Massive Capital Outflows and KCS Price Drop

Additionally, the price of KCS plummeted following allegations from the United States Commodity Futures Trading Commission (CFTC) and the United States Attorney’s Office for the Southern District of New York. The charges included violations of the Bank Secrecy Act and unlicensed money transmission crimes.

The CFTC has filed a civil lawsuit in New York against several entities, including Mek Global Limited, PhoenixFin PTE Ltd, Flashdot Limited, and Peken Global Limited, which collectively operate KuCoin.

Onchain analytics firm Nansen reported $1.7 billion in crypto assets withdrawn from the exchange in response to the allegations. KuCoin’s future trajectory remains uncertain amidst these legal and regulatory challenges.