KuCoin releases 30th consecutive proof of reserves report: BTC at 106%, ETH at 116%

KuCoin cryptocurrency exchange has released its 30th Proof of Reserves report. According to the report, all of the top cryptocurrencies on the exchange are overcollateralized and completely reserved as of April 30, 2025.

As per the data, Bitcoin reserves are covered at 106%, Ethereum at 116%, USDT at 114%, and USDC at 109%. This transparency initiative comes as exchanges face increased scrutiny over their reserve management practices and amid contradictory claims about KuCoin’s actual holdings.

Detailed KuCoin reserve ratios exceed 100% across all major assets

The most recent Proof of Reserves report of KuCoin provides a transparent picture of the exchange assets. It indicates that user deposits are fully covered and have excess funds on top of the 100% coverage mandate. Based on the information gathered on April 30, 2025, at 23:59:59 UTC+8, the exchange has assets in its wallets that are higher than the combined deposits by users in all the popular cryptocurrencies.

KuCoin explains that there are 9,751.17 BTC stored in users’ accounts and a total of 10,306.78 BTC stored in the total wallets in the case of Bitcoin. That equates to a reserve rate of 106%. What the exchange then effectively has is nearly 555 more BTC than have been deposited by users. With Ethereum, this reserve rate of 116% means there are 145,807.40 ETH stored by users against the total 168,779.13 ETH held in wallets.

The stablecoin reserves are more than fully collateralized. USDT is backed at a 114% ratio, with 1.18 billion in user assets against wallet assets of 1.34 billion. USDC is backed at a ratio of 109%, with 85.71 million in user assets against wallet assets of 93.42 million. These statistics show that if all the users withdrew simultaneously, KuCoin would have reserves to cover all the withdrawals and still have some assets left over.

Conflicting narratives about KuCoin’s actual reserves

Although a recent proof of reserves report by KuCoin showed strong overcollateralization, the exchange has become a victim of misleading accusations about the true assets on its balance sheets. Since June 2023, KuCoin’s Bitcoin reserves have decreased by 77.6%, according to CryptoQuant’s Onchain School. That’s when the exchange started enforcing more stringent Know Your Customer (KYC) regulations.

The analytics firm found that KuCoin’s Bitcoin reserves dropped from about 18,300 BTC to at least 4,100 BTC. This was following the June 5, 2023, rumors regarding shifting KYC rules and the June 28, 2023, release of a real-name system requirement.

KuCoin said the claims are false and objected to the release of what it called “unverified claims.” They also asked CryptoQuant to be more careful when releasing information that can affect trust in the market. The exchange claims that its reserves are sufficient, as demonstrated by its reserve period reports.

While proof of reserves reports provide a snapshot of an exchange’s holdings at a specific moment, critics argue these reports may not give the complete financial picture. This included potential liabilities or off-chain arrangements.

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