KuCoin CEO Disapproves Rumors of Discontinuing Withdrawals
Some rumours have been circulating within the crypto market that – because of having exposure to Three Arrows Capital (the recently collapsed venue) – KuCoin is moving toward insolvency. However, the CEO of the platform – Johnny Lyu – immediately countered such allegations and refuted them straightforwardly, stating that KuCoin is carrying out all the operations thereof as usual without any difficulty. He also mentioned that the company will not halt consumer withdrawals regardless of the severe market conditions as well as the crisis of Three Arrows Capital.
CEO Affirms that KuCoin Functions as Normal
While refuting the rumours which emphasize that KuCoin could be nearing a likely crash, the company’s CEO categorized them as fear, uncertainty, and doubts (FUDs) spread by the people whose identities and intentions in doing so are not in his knowledge. Nonetheless, he added, no exposure has been gained on the behalf of the firm to any of LUNA, Babel, 3AC, etc. As he put it, no strategy has been made by the firm to put a closure to the withdrawals and the operations of KuCoin are being carried out normally without facing any hindrance.
Johnny Lyu discussed the supposition that insolvency could be experienced by the firm in a series of posts shared on Twitter, claiming that KuCoin’s activities are done at their usual pace with no plans to restrict withdrawals. Additionally, he touched on the topic of the potential issues linked to liquidity and labeled them as just rumors with no base to stand on. To further clarify it, Lyu discards the notions of having exposure to Babel Finance, Three Arrows Capital, or even Terra ecosystem.
Recent Events in the Market that Likely Added Fuel to the Fire
On Late Friday, some rumors about the internal problems of KuCoin, hours following such a situation befell Voyager Digital as a result of the continuous chapter of Three Arrows Capital. On Friday, Voyager declared to discontinue the trading, deposits, and withdrawals performed by the consumers along with delving into some other systematic replacements in the terms of the firm’s further progress.
In the previous month, it was disclosed that 3AC had reached a default stage with having a loan of up to 350M USDC (nearly 15,250 BTC or $665M) from Voyager. The loan has not yet been recompensed on the behalf of Three Arrows Capital.
