• KuCoin confirms that a wallet address responsible for launching memecoin rug pulls daily belongs to one of its users.
• The exchange will not take action against the user until it receives notice from law enforcement.
• KuCoin encourages users to report suspicious activity and promises to cooperate with authorities after receiving the necessary documents.
KuCoin Confirms Exchange User is Behind Memecoin Rug Pulls
Crypto exchange KuCoin confirmed that a wallet address allegedly responsible for launching thousands of memecoin scams belongs to one of its users. However, the exchange will not freeze the user’s assets without any official notice from law enforcement.
Community Member Identifies Wallet Address
On April 26, a Twitter user identified a wallet address that launched two to five memecoins daily for two years. Another community member pointed out that the wallet addresses were “owned and controlled” by KuCoin.
KuCoin Will Not Freeze Assets Without Notice From Law Enforcement
In a statement sent to Cointelegraph, the crypto exchange confirmed that the wallet address belongs to one of its users. According to KuCoin’s Johnny Lyu, while the address belongs to one of the platform’s users, it will not freeze the account until it receives a notice from relevant authorities.
KuCoin Encourages Users To Report Suspicious Activity
In addition, the exchange told Cointelegraph that if community members encounter any suspicious behavior, they must report it to police and submit relevant materials to its team. Lyu added that KuCoin would be pleased cooperate after receiving required documents.
Compromised Account Used in Fake Activity on April 24th
The KuCoin exchange has faced challenges in past week. On April 24th, platform’s official Twitter account was compromised and posted fake activity resulting some followers losing their assets . After identifying breach , exchange worked with Twitter recover stolen funds .