- KuCoin and its founders had been discovered responsible of breaching U.S. federal legal guidelines.
- The change plans to host an airdrop occasion to calm traders.
In a latest flip of occasions, U.S. prosecutors have accused KuCoin and its founders of allegedly breaching anti-money laundering legal guidelines. The costs contain two of KuCoin’s founders, Chun Gan and Ke Tang, violating the Financial institution Secrecy Act and working an unlicensed money-transmitting enterprise.
Individually, the Commodity Futures Buying and selling Fee (CFTC) additionally filed a case towards KuCoin for breaching the Commodity Trade Act and CFTC rules.
In response to this, the exchange swiftly moved to reassure customers in regards to the security of their property.
“KuCoin is working nicely, and the property of our customers are completely protected. We’re conscious of the associated studies and are at the moment investigating the main points by way of our attorneys. KuCoin respect the legal guidelines and rules of assorted nations and strictly adheres to compliance requirements.”
Regardless of the reassurance, the worth of KuCoin’s native token KCS appears to have taken a downturn at the moment buying and selling at $12.21 after a 17.26% drop prior to now week.
The reassurance airdrop
Inside a day of the allegations, KuCoin CEO Johnny Lyu introduced on the twenty seventh of March change’s blog, that the change plans to host an airdrop occasion. This initiative will distribute Bitcoin and the platform’s native token, KuCoin (KCS), with a mixed worth of $10 million.
In response to investor issues stemming from the Confido rug pull incident, Lyu emphasised that the airdrop serves as a token of gratitude for loyal prospects.
“Not too long ago, on March twenty sixth and twenty seventh, some customers skilled longer-than-expected wait instances throughout the withdrawal course of. […] To specific our profound gratitude to your assist and persistence KuCoin will launch a particular airdrop occasion totaling 10 million USD in KCS and BTC.”
The SEC additionally emphasised that whereas airdrops supply interesting token distribution alternatives, additionally they include regulatory dangers.