Cryptocurrency exchange KUCOIN isn't insolvent despite the FUD related to the recent withdrawal of $300 million in USDT from one of the exchange's addresses, said the exchange's boss Johnny Lyu.
According to a blog post, the rumors started spreading shortly after Nansen, a blockchain analytics platform, showed that $300 million had left KuCoin. Lyu said that Nansen had mistakenly marked conversion of ERC20 USDT into TRC20 USDT as a withdrawal.
"Nansen acknowledged that they only track ERC 20 tokens, so the TRC20 USDT did not show up and was mistakenly interpreted as an outflow," he added.
The KuCoin CEO reassured users that the exchange "would never misappropriate user funds" and we will ensure "full transparency," referring to the ongoing crisis around FTX.
Lyu's comments come amid FTX collapse. According to The Wall Street Journal's sources, FTX boss Sam Bankman-Fried is seeking emergency funding to cover a shortfall of up to $8 billion due to a massive wave of withdrawals requests in recent days.
