Apr 28, 2023

KuCoin Confirms User Behind Memecoin Scams, Refuses to Freeze Assets

The KuCoin cryptocurrency exchange recently confirmed that an address responsible for launching thousands of memecoin scams belongs to one of its users. However, the exchange has said it will not freeze the user’s assets without any official notice from law enforcement.

The news came to light after a Twitter user identified a wallet address that had been launching two to five memecoins daily for two years. Another community member pointed out that the wallet addresses were “owned and controlled” by KuCoin. The address has since been marked as a fake phishing wallet on blockchain explorer Etherscan.

In a statement sent to Cointelegraph, KuCoin’s Johnny Lyu confirmed that the wallet address belongs to one of its users. However, Lyu said the exchange will not freeze the account until it receives a notice from the relevant authorities.

“When the reporting party has provided relevant legal documents, procedures, or reporting records, we will assist and cooperate with law enforcement agencies to take temporary risk control measures in accordance with complaints and reports, user agreements and Seychelles laws,” Lyu said.

The exchange has also asked community members to report any suspicious behavior to the police and submit the relevant materials to its team. KuCoin will then cooperate with authorities after receiving the required documents.

The KuCoin exchange has had a difficult week. On April 24, its official Twitter account was hacked and fake activity was posted, resulting in some of its followers losing their assets. The exchange worked with Twitter to recover the social media account and promised to reimburse the victims affected by the hack.

The incident has put a spotlight on the need for more stringent security measures when it comes to crypto-related crime. US enforcement agencies are taking a tougher stance on crypto-related crime, and exchanges are being urged to implement more secure protocols to protect users and their assets.

For its part, KuCoin has taken steps to ensure that its users are better protected. The exchange recently spun off its wallet service into a separate entity, Halo Wallet, which is designed to provide users with a more secure and user-friendly experience when it comes to buying, selling, and storing their digital assets.

The exchange is also looking to increase its presence in the web3 space, and is exploring ways to promote NFTs and other digital assets to a wider audience. It is in talks with various NFT marketing agencies to explore the possibility of launching a NFT marketing campaign on Twitter and other social media platforms.

KuCoin’s foray into the NFT space is a sign of the growing popularity of the digital asset class, and the exchange is hoping to capitalize on the trend by providing users with more options when it comes to buying, selling, and promoting NFTs.

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