Johnny Lyu, the CEO and one of the co-founders of KuCoin, denied allegations that the exchange suffered losses as a result of the Terra crash, claiming that they were not exposed.
An account that tweets about cryptocurrency news, otterooo, made a controversial claim regarding KuCoin on Saturday, claiming that the exchange is likely to become insolvent.
In response to similar rumors about the stability of KuCoin, Lyu provided details about the company’s current financial situation in a blog post.
“It is our responsibility to keep them secure and make sure users can always withdraw in full whenever they want. Having a LUNC wallet does not necessarily mean KuCoin as a company is holding lots of LUNC tokens, and I’m sure the difference is obvious.”
In a tweet, Otterooo stated that the information came from a KuCoin insider who said the exchange was raising money to cover its losses. Lyu said that the “so-called KuCoin employee whistleblows” contained numerous logical flaws.
There was a report earlier this month that the exchange will stop allowing withdrawals on its platform due to significant losses from the LUNA collapse. Traders sold out the exchange KCS token as a result of Twitter rumors that the exchange might stop providing withdrawals.
Johnny Lyu stated that the company had no exposure to LUNA, 3AC, or Babel in response to the assertions that his exchange will implode.
KuCoin is the sixth-largest cryptocurrency exchange in the world with $786 million in 24-hour trading volume. The KCS token ranks as the 49th most valuable digital asset on CMC with a market valuation of $965 million.