KuCoin, a popular cryptocurrency exchange, has recently come under fire for claims that it lost over 77% of its Bitcoin reserves since 2023. However, the exchange has vehemently denied these allegations, calling the circulating figures misleading and inaccurate.
The controversy began with a report by Onchain School, a data-focused platform that cited data from CryptoQuant. According to their findings, KuCoin’s Bitcoin holdings dropped from 18,300 BTC in June 2023 to approximately 4,100 BTC by April 2025. This drastic decrease of around 14,200 BTC was attributed to KuCoin’s implementation of mandatory know-your-customer (KYC) rules in mid-2023.
The introduction of the KYC policy, which required all users to complete identity verification, was aimed at combating criminal activities such as money laundering and terrorism financing. However, Onchain School suggested that this compliance push led users to withdraw their funds due to privacy concerns. The platform also noted that KuCoin’s situation reflected a larger trend of declining Bitcoin reserves across centralized exchanges, but emphasized that KuCoin’s case was particularly severe due to its timing and scale.
In response to these claims, KuCoin released its 30th Proof of Reserves, which showed that it held a 106% Bitcoin reserve ratio. This included approximately 9,751 BTC in user funds and 10,306 BTC in exchange-controlled wallets. The report also indicated reserve coverage of 116% for Ethereum, 114% for USDT, and 109% for USDC.
KuCoin refuted the allegations and expressed concern over what it deemed as irresponsible reporting. The exchange emphasized its commitment to transparency and responsible reporting, warning that inaccurate data could erode public confidence in the crypto ecosystem. In a statement, KuCoin said, “We’re concerned about the spread of false or misleading information by some platforms. Irresponsible reporting misleads users and undermines trust in the crypto ecosystem.”
Overall, KuCoin’s pushback against the claims of falling Bitcoin reserves highlights the importance of accurate and transparent reporting in the cryptocurrency industry. As the market continues to evolve, exchanges must prioritize maintaining trust and credibility with their users to ensure the long-term success of the industry.