KuCoin Exchange to incentivize customers with $10 million airdrop amid DoJ, CFTC-related lawsuit
Trending Articles- U.S. November Nonfarm Payrolls: What Does the Rare "Weak Jobs, Strong Economy" Mix Mean for U.S. Equities?
- Tesla Stock Hits Record High as Robotaxi Tests Ignite Market. Why Is Goldman Sachs Pouring Cold Water on Tesla?
- U.S. November CPI: How Will Inflation Fluctuations Transmit to US Stocks? Tariffs Are the Key!
- AUD/USD remains depressed below mid-0.6600s; downside seems limited ahead of US NFP report
- US Q3 GDP Released, Will US Stocks See a "Santa Claus Rally"?【The week ahead】
- December Santa Claus Rally: New highs in sight for US and European stocks?
■ KuCoin CEO announces $10 million airdrop worth of KCS and BTC in appreciation for community support.
■ Exchange faces regulatory troubles after DoJ, CFTC and HSI called it out for violating AML laws.
■ Rules for the airdrop will be released in three days, but KuCoin token KCS remains down 5%.
In a Tuesday announcement, the US Department of Justice (DoJ) in collaboration with the Commodities Futures Trading Commission (CFTC) and the Homeland Security Investigations (“HSI”) levied charges against KuCoin Exchange and two of its founders, Chun Gan (Michael) and Ke Tang (Eric).
Charges concern the violation of US Anti-Money Laundering Laws in their efforts to grow KuCoin into one of world’s largest cryptocurrency exchanges, servicing over 30 million customers.
KuCoin CEO plans $10 million airdrop
As reported, the news had spelled fear uncertainty, and doubt (FUD) among KuCoin customers, who fled to avoid exposure in case the worst happened. After the Terraform Labs and FTX debacles, ‘better safe than sorry’ became the way to go. Consequently, the platform witnessed over $1 billion in outflows on Wednesday as retail took out their holdings.
KuCoin news was just more FUD in this cycle; anyone who is a serious investor in #Bitcoin is not transacting with that exchange. $10M+ transactions are internal; most withdrawals were retail. pic.twitter.com/9RprQdMNY3
— James Van Straten (@jvs_btc) March 27, 2024
Amid massive withdrawal transactions, customers experienced delays, which worsened the situation, prompting the exchange to announce the safety of funds.
To soothe customers after hours of fear and anxiety, KuCoin Exchange CEO Johnny Lyu has announced a $10 million airdrop as incentive for users and supporters, with rules to be communicated in three days.
Our CEO @lyu_johnny wrote a letter to the #KuCoin community, addressing the recent challenge and expressing gratitude with a $10M giveaway for the unwavering support from all of you.
— KuCoin (@kucoincom) March 27, 2024
Read the full letter ⬇️
According to the Wednesday blog, The giveaway is in appreciation for years of support that community members have accorded the platform. Notably, this is not the first time the exchange is attempting to soothe community members after a negative issue.
In October 2017, the delisting of the CFD project also sparked negative sentiment, causing the introduction of the proactive compensation program, which earned KuCoin the reputation of being the "People's Exchange." The airdrop borrows from this leaf, totaling 10 million USD in KCS and BTC.
Bearing in mind the security issues relating to airdrops, Lyu has urged community members to be aware of any form of scams. Notably, bad actors tend to put up misleading links to defraud unsuspecting customers.
Meanwhile, the KuCoin token (KCS) price is yet to recover from the crash and is down around 5% in the last day.
KCS/USDT 1-day chart
Read more
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
