KuCoin CEO reacts to insolvency allegations, but does not reassure anyone!

Recently, KuCoin CEO Johnny Lyu faced some rumors regarding the exchange. Earlier this month, the exchange was rumored to halt withdrawals on its platform due to heavy losses from the collapse of LUNA. Lastly, similar speculations are circulating about the stability of KuCoin. On the KuCoin blog, Johnny Lyu detailed the company’s current position regarding its financial status.

KuCoin Insolvency Rumors

In a Saturday tweet, otterooo, an account that tweets about developments in crypto, made an alarmist prediction. They said that KuCoin will become insolvent, according to confidential information. The exchange may not have the assets to meet depositor redemptions, they added, alluding to Kucoin’s insolvency. Reacting to this, Johnny Lyu refuted claims that his company suffered losses due to Terra’s collapse. The CEO of KuCoin clarified that a majority of funds in KuCoin wallets do not belong to the exchange but to users.

https://twitter.com/otteroooo/status/1550713709554651139?s=20&t=j0YHZ2Y1bb1CfOLDrL9RDw

It is our responsibility to keep them safe and to ensure that users can always withdraw their entire funds whenever they wish. Having a LUNC wallet does not necessarily mean that KuCoin as a company holds a lot of LUNC tokens, and I’m sure the difference is obvious.

Logical errorsin KuCoin’s Alleged Insolvency Rumors

Possibly referring to KuCoin’s insolvency allegations, Johnny Lyu said that there were many logical errors in the “so-called denunciations of KuCoin employees.” KuCoin has no exposure to LUNA and wLUNA, he added. The CEO said that KuCoin has recently faced rumors from two sources, those made both unknowingly and intentionally.

Earlier this month, KuCoin denied claims that the company was about to stop withdrawals due to heavy losses from Terra collpase. KuCoin has no exposure to LUNA, 3AC or Babel, he clarified. At the time, Johnny Lyu threatened to take legal action against those trying to spread confusion and denigrate the stock market.

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