KuCoin, a cryptocurrency exchange, has responded to allegations that one of its customers is responsible for launching thousands of meme coin frauds. While the exchange confirmed that the wallet address associated with the complaint belonged to one of its users, it stated that it would only freeze the account if law enforcement formally notified them.
The allegations were first brought to light on April 26, 2023, when a Twitter user named CoinGurruu discovered a wallet address that had released 2-5 meme coins every day for two years.
This wallet has launched 2-5 memecoin rugs daily for almost 2 years straight:
0xCc16D5E53C1890B2802d5441d23639CAc6cd646F
These devs have incredible hustle. Make sure you label it on Etherscan so you don’t line their pockets with your money
Absolute insanity. pic.twitter.com/ffNQ4sTGls
— ????Guru ???? (@CoinGurruu) April 26, 2023
Another user, James Edwards, called out KuCoin for allegedly owning and managing the wallet address linked to thousands of meme coin frauds. However, Edwards refrained from jumping to conclusions and tagged the exchange’s CEO to respond. The wallet address in question has since been marked as a fake phishing wallet by Etherscan.
.@CoinGurruu the wallet that you claim has launched 2-5 memecoin scams per day for the past two years is owned and controlled by @kucoincom. @etherscan has already marked this address as “Fake_Phishing179336”.
Comments @lyu_johnny? https://t.co/8sy07KujUa pic.twitter.com/gziza5mVNW
— James Edwards (@librehash) April 27, 2023
KuCoin CEO John Lyu acknowledged the situation and stated that an investigation had been launched and appropriate risk control measures would be implemented before the matter was resolved. He emphasized that the company’s primary concern is to protect users’ assets and ensure that cryptocurrency is not utilized for criminal activities.
We are aware and have already begun an investigation on this matter. Before everything is clear, we will take appropriate risk control management accordingly. Safeguarding users’ assets is our priority, and making sure no crime can take place in crypto is our responsibility.
— Johnny_KuCoin (@lyu_johnny) April 28, 2023
In response to the meme coin fraud allegations, KuCoin provided a statement to a media outlet reassuring its users that it remains committed to providing secure and reliable services while cooperating with law enforcement agencies to prevent illegal activities. The exchange urged community members to provide the required documentation to the exchange’s staff when they detect any suspicious activity.
KuCoin faced another challenge earlier in the week when its Twitter account was reportedly hacked for 45 minutes, resulting in financial losses for several individuals. The exchange promptly announced via Twitter that they would reimburse all verified asset losses resulting from the social network hack and subsequent scam.
KuCoin emphasized that only its Twitter account was affected by the incident and that it took swift action to regain control of the account with the help of Twitter support. The exchange also reassured its users that the assets they held on the platform were secure.
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