KuCoin CEO Denies Withdrawal Freeze Rumors

The rumors surfaced hours after Voyager Digital launched it became freezing customer withdrawals amid the ongoing Three Arrows Capital disaster. 

KuCoin Running as Frequent, CEO Insists 

Rumors that KuCoin may well well well be on the level of crumple are untrue, in step with the firm’s CEO. 

Snoop on FUDs!

Not determined who’s spreading these sheer rumors, and what their intentions are, nonetheless #KuCoin doesn’t possess any publicity to LUNA, 3AC, Babel, and so on.

No “gargantuan suffer” from any “coin crumple”, no realizing to cease withdrawal, the entirety on KuCoin is running successfully.

— Johnny_KuCoin (@lyu_johnny) July 2, 2022

Johnny Lyu addressed speculation that the firm may well well well be facing insolvency in an early Saturday tweet storm, declaring that “the entirety on KuCoin is running successfully” and the alternate had no plans to cease withdrawals. Lyu furthermore described the circulating chatter about KuCoin’s that you just may well well additionally take into account liquidity complications as “sheer rumors” and confirmed that the firm has no publicity to the Terra ecosystem, Three Arrows Capital, or Babel Finance. 

Rumors of KuCoin’s internal complications surfaced late Friday, hours after Voyager Digital turned the domino to topple as part of crypto’s ongoing Three Arrows saga. Voyager launched Friday that it became halting customer withdrawals, deposits, and procuring and selling and “exploring strategic picks” for how the company may well well also switch forward. Closing month, it became printed that Three Arrows had defaulted on a mortgage of 15,250 Bitcoin and 350 million USDC worth around $665 million from Voyager. Three Arrows is yet to make the repayments. 

KuCoin raised $150 million in a funding spherical in Could well well well, valuing the firm at $10 billion. As Lyu illustrious in his Saturday announcement, the firm is furthermore actively hiring despite the ongoing market sail. Lyu added that “being transparent is constantly one of [KuCoin’s] key ideas” and closed his post with a favorable stamp: “Don’t FUD, BUIDL.” 

The Three Arrows Disaster 

Till the disaster began to unfold in early June, Three Arrows became one of crypto’s excellent hedge funds retaining bigger than $10 billion in resources below administration at its peak. As the crypto market plummeted, it came to gentle that the firm became facing major liquidity complications as it had taken on leverage from crypto lenders without factoring for a necessary downturn. The firm’s co-founder Kyle Davies talked about that it had lost $200 million on its Terra wager when LUNA crashed in Could well well well, and a pair of crypto lenders possess since printed that they’d publicity to the firm. BlockFi loaned Three Arrows an undisclosed sum and has since inked a deal to be acquired by FTX.US for as much as $240 million with a further $400 million rolling credit rating facility. Babel Finance, CoinFLEX, and Celsius furthermore answered to the market downturn by halting withdrawals, despite the proven reality that none of them confirmed that they’d Three Arrows publicity. On Friday, the disquieted hedge fund filed for Chapter 15 monetary break in Fresh York. 

Though the tubby scale of the Three Arrows disaster remains unknown, several firms were arduous hit thus some distance, and the market hasn’t proven mighty heed of lifestyles within the fallout. Bitcoin tumbled again Saturday after per week of rocky ticket movement. It’s at display procuring and selling at $19,260, about 72.1% down from its $69,000 peak. 

Disclosure: At the time of writing, the creator of this part owned ETH and several other varied cryptocurrencies.