KuCoin Exchange to incentivize customers with $10 million airdrop amid DoJ, CFTC-related lawsuit

Source Fxstreet
  • 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.

Also Read: Kucoin Exchange, execs charged by DoJ, HSI, authority cites ‘multibillion-dollar criminal conspiracy’

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.

Amid massive withdrawal transactions, customers experienced delays, which worsened the situation, prompting the exchange to announce the safety of funds.

Read full report here: Kucoin sees massive withdrawals after indictment by the US Justice Department

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.

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

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
US August CPI lands tonight: after a 5.4% PPI shock, will the Fed hike on September 16?US August PPI came in at 5.4% year-on-year, above the 5.3% consensus, with core PPI at 4.6%. Traders have pushed the odds of a 25bp Fed hike on September 15-16 to around 70%. Tonight's CPI is the last major inflation print before the decision — here is the full calendar, the consensus numbers, and what a hot versus cool reading would mean for the dollar, yields, gold and stocks.
Author  Irene Q.
Sep 11, Fri
US August PPI came in at 5.4% year-on-year, above the 5.3% consensus, with core PPI at 4.6%. Traders have pushed the odds of a 25bp Fed hike on September 15-16 to around 70%. Tonight's CPI is the last major inflation print before the decision — here is the full calendar, the consensus numbers, and what a hot versus cool reading would mean for the dollar, yields, gold and stocks.
placeholder
Brent tests $108 as a key export pipeline stays shut — can the rally clear $110?Brent crude rose 2.55% to $106.97 and WTI 2.32% to $102.30 as a major regional export pipeline remained offline with no restart timeline. Front-month backwardation has widened to $5.53 from $3.84 a week ago, European gas is at its highest since December 2022, and one analyst sees $119.48 if talks stall.
Author  Irene Q.
Sep 14, Mon
Brent crude rose 2.55% to $106.97 and WTI 2.32% to $102.30 as a major regional export pipeline remained offline with no restart timeline. Front-month backwardation has widened to $5.53 from $3.84 a week ago, European gas is at its highest since December 2022, and one analyst sees $119.48 if talks stall.
placeholder
Fed hike odds near 90% into Wednesday's decision — how to trade the dollar, gold and the S&P 500A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
Author  Suzie
Sep 14, Mon
A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
placeholder
Gold falls below $4,300 as higher US yields bolster Fed rate hike betsGold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week. 
Author  FXStreet
Yesterday 01: 23
Gold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week. 
placeholder
【Daily Brief】10-year Treasury yield briefly tops 5%, S&P 500 slips to 7,602 and the dollar firms at 99.3 as the Fed's decision eve beginsThe 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
Author  Irene Q.
20 hours ago
The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
Related Instrument
goTop
quote