KuCoin confirms an exchange user is behind alleged daily rug pulls

Crypto trade KuCoin confirmed that the handle allegedly accountable for launching hundreds of memecoin scams belongs to certainly one of its customers. Nonetheless, the trade won’t freeze the consumer’s property with none official discover from legislation enforcement. 

On April 26, a Twitter consumer recognized a pockets handle that launched two to 5 memecoins every day for 2 years. One other group member identified that the pockets addresses had been “owned and managed” by KuCoin. In the intervening time, blockchain explorer Etherscan has already marked the mentioned handle as a pretend phishing pockets.

.@CoinGurruu the pockets that you simply declare has launched 2-5 memecoin scams per day for the previous two years is owned and managed by @kucoincom. @etherscan has already marked this handle as “Fake_Phishing179336”.

Feedback @lyu_johnny? https://t.co/8sy07KujUa pic.twitter.com/gziza5mVNW

— James Edwards (@librehash) April 27, 2023

In an announcement despatched to Cointelegraph, the crypto trade confirmed that the pockets handle belongs to certainly one of its customers. In accordance with KuCoin’s Johnny Lyu, whereas the handle belongs to one of many platform’s customers, it won’t freeze the account till it receives a discover from the related authorities. Lyu defined: 

“When the reporting celebration has offered related authorized paperwork, procedures, or reporting data, we are going to help and cooperate with legislation enforcement companies to take short-term danger management measures in accordance with complaints and stories, consumer agreements and Seychelles legal guidelines.”

As well as, the trade advised Cointelegraph that if group members encounter any suspicious habits, they need to report it to the police and submit the related supplies to its staff. Lyu added that KuCoin can be happy to cooperate after receiving the required paperwork.

Associated: KuCoin Wallet spins off from KuCoin exchange, rebrands as Halo Wallet

The KuCoin trade has confronted challenges prior to now week. On April 24, the platform’s official Twitter account was compromised and posted a pretend exercise, leading to a few of its followers shedding their property. After figuring out the breach, the trade labored with Twitter to recuperate the social media account and promised to reimburse the victims affected by the hack.

Journal: US enforcement agencies are turning up the heat on crypto-related crime