Colin Wu claimed that the KuCoin crypto exchange was already aware of the high possibility of American enforcement action against its services.
Colin Wu is a Chinese crypto blogger, who covers almost every type of news across the crypto sector. He has a better relationship with the Chinese crypto entrepreneurs & Chinese crypto media reporters.
On 27 March 2024, Colin Wu said that he received inside information about the KuCoin crypto exchange regarding its legal hurdles with the US authorities as well as Chinese authorities.
Wu claimed that three sources reported that the KuCoin executives were already aware of the potential enforcement action & criminal investigation over its crypto services.
Insiders disclosed that KuCoin owners were planning to wind down their crypto operations as well as sell the business to other players, in 2023.
Reportedly many crypto exchanges, including top crypto exchange Binance, received information about the sale of the KuCoin crypto business empire last year.
The majority of the Crypto X (formerly Twitter) users called this information not more than a FUD and suggested each other ignore such unofficial sourced information.
KuCoin vs US DOJ
Yesterday we reported that the US DOJ charged KuCoin & its two co-founders for not complying with the Bank Secrecy Act.
As per Doj’s charges, KuCoin failed to get registered with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) and with the U.S. Commodity and Futures Trading Commission (CFTC).
Some industry experts believe that soon the United States Securities and Exchange Commission (SEC) will also announce its charges against this crypto exchange.
Following this bad news around the KuCoin crypto exchange, the trade price of the KuCoin token (KCS) crashed 17%.
Yesterday, nearly $2 billion in funds saw outflow from this exchange, as the majority of KuCoin users got in a sudden high panic over the safety of their funds, following the announcement of US DOJ charges.
Read also: Court rules in favour of the SEC body, Coinbase lost the legal battle against the US SEC?
