Crypto exchange KuCoin has responded to claims on the social media platform Reddit of users being unable to withdraw their funds from the exchange.
On Feb. 21, Reddit users started posting claims in the KuCoin subreddit that they were unable to withdraw their funds from the exchange. One Redditor posted that they have already been locked out of their funds for four months. The user claimed they had already provided all the information that KuCoin asked for but still did not receive any action from the exchange.
Another Redditor shared that their account has been blocked for two months. The user claims that KuCoin responded to them with some “serious allegations,” saying that it received a report that the account was involved in certain crimes like fraud, stealing of tokens or hacker attacks, with sufficient evidence. However, the Reddit user claims they have not received any details from the exchange.
In addition, one user posted that $30,000 worth of their Monero (XMR) tokens were frozen by the exchange. Meanwhile, another community member reported that their withdrawal capabilities have been frozen despite having a verified account with years of usage.
The reports on Reddit triggered discussions among users and speculations on the causes of the reports. Some thought the issue might have something to do with the Know Your Customer (KYC) implementation, while others warned users to “get out” to avoid potential problems with their digital assets.
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However, the KuCoin team assured users that they were already trying to resolve the problems reported on the subreddit. Eden Gao, KuCoin’s global PR and branding associate, told Cointelegraph that for all four cases posted on Reddit, their moderators are already communicating with the users to resolve their issues. Gao explained that they would keep the conversation going and would be providing solutions to all the cases. The KuCoin representative added:
“Please note that KuCoin does not freeze user accounts nor prohibit users from disposing of their assets. To enhance user security, KuCoin implements a comprehensive risk control system and voluntarily cooperates with authorities or law enforcement organizations around the world to enhance our practice.”
The KuCoin representative also mentioned that as their exchange has 31 million users across the globe, some users “might experience some disruptions.” However, Gao assured the community that they have designated support members across public platforms like X (formerly Twitter), Telegram, Reddit and others.
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