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KuCoin CEO Responds to Insolvency Claims, But Reassures No One!

Recently, KuCoin CEO Johnny Liu came across some exchange rumors. Earlier this month, there were rumors that the exchange would suspend withdrawals on its platform due to heavy losses from the collapse of LUNA. Finally, similar speculation extends about the stability of KuCoin. On the KuCoin blog, Johnny Liu detailed the company’s current position in regards to its financial position.

KuCoin Bankruptcy Rumors

In a Saturday tweet, otterooo, an account that writes about the development of crypto, made an alarmist prediction. They said that KuCoin would become insolvent, according to confidential information. The exchange may not have assets to pay back depositors, they added, citing Kucoin’s insolvency. Reacting to this, Johnny Liu denied claims that his company had suffered losses due to the collapse of Terra. The KuCoin CEO explained that most of the funds in KuCoin wallets do not belong to the exchange, but to users.

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

“We are responsible for their safety and ensuring that users can always withdraw all their funds whenever they want. Having a LUNC wallet does not necessarily mean that KuCoin as a company owns more LUNC tokens, and I’m sure the difference is clear.”

“Logic Fallacies” in Alleged Rumors of KuCoin’s Insolvency

Possibly referring to KuCoin’s insolvency allegations, Johnny Liu said that there were many logical errors in the “so-called denunciations of KuCoin employees”. He added that KuCoin is not related to LUNA and wLUNA. The CEO said that KuCoin was recently confronted with rumors from two sources that were made both out of ignorance and on purpose.

Earlier this month, KuCoin denied claims that the company was about to stop withdrawing funds due to heavy losses from the collapse of Terra. He clarified that KuCoin is not related to LUNA, 3AC or Babel. At the time, Johnny Liu threatened to sue those who tried to confuse and vilify the stock market.

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