Reddit User Calls Out KuCoin Over ≈$50,000 Stuck On Exchange
November 24 2021 - 3:30PM
NEWSBTC
The heat has been on crypto exchange KuCoin recently after a Reddit
user called them out on Reddit regarding funds being held on the
exchange. The user had first taken to Reddit to vent their
frustrations in an open letter to CEO Johnny Lyu after making no
progress with its customer support representatives. According to
the user’s statements, the exchange was withholding ≈$50K worth of
crypto on the exchange. The user explained that KuCoin had
announced that they would be supporting a new BCH fork, eCash
(XEC), leading them and many others to invest in the asset on the
exchange. Problems arose when the exchange had run out of liquidity
for the cryptocurrency. KuCoin users realize that they could not
sell their holdings without doing so at a significant loss (selling
for cents to the dollar). Related Reading | Kraken Is
Delisting Top Privacy Coin Monero (XMR) For UK Users However, a
much sinister issue arose when they found out they could not
transfer the coins out either. Since then, the user claimed that
they have had ≈$50,000 worth of crypto being withheld by the
exchange for over six months and still have not been allowed to
move their coins. Open Letter To KuCoin CEO The Reddit user who
goes by the username u/BCHcain had first drawn attention to the
issue when they posted an open letter to CEO Johnny Lyu about four
days ago. In the open letter, they include screenshots of their
communications with the support staff dating back at least six
months. The user explained that KuCoin had been giving them the
runaround with no real indication of solving the issue and had
‘receipts’ to back this up. CEO Johnny Lyu had responded to this
open letter about three days after posting, giving what could be
described as a low-effort response to a clearly distressed user.
“Thanks for bringing it up. The upgrade is underway, and since it’s
not just a simple rename or rebrand, we still need some time to
complete it. Thanks for your patience and understanding,” Lyu
wrote. Reddit users had called out the CEO over the response,
pointing out that the answer proved everything that the user had
claimed in their post; that the exchange did not seem interested in
solving their issue. Calling On The Community Four days after the
open letter had been posted, the u/BCHcain had once again posted to
Reddit. This time calling on the community to help amplify the
issue, pointing out that if it could happen to them, then it could
happen to anyone. This follow-up post garnered considerably more
attention than the open letter. The issue has raised concerns over
the power centralized exchanges have over the funds of users. In a
way, these centralized exchanges control user funds the same way as
banks, something that the crypto enthusiasts are fervently trying
to do away with. Related Reading | Bitcoin Whale Wallet
Containing 1,299 BTC Activates After Eight Years The crypto
exchange had also been called out on the same platform by another
user who claimed that KuCoin was using Cloudfare to deny access to
the platform during bull rallies in order to force users to
liquidate and then profit from these liquidations. KuCoin is yet to
respond to the second post. However, it continues to spark
conversations around issues with KuCoin and CEXes in general. As of
the time of writing, the post has received 5.3K upvotes and has
1.6K comments. Featured image from CoinDesk, chart from
TradingView.com
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