Draft:Kucoin

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Kucoin
KUCOIN
Type of businessPrivate
Available inEnglish, Russian, Chinese, Spanish, Turkish, Portuguese
Founded2017; 7 years ago (2017)
ProductsCryptocurrencies

Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Ripple, Monero, NEO, EOS

Fiat Currencies

USD, EUR, JPY, GBP
ServicesCryptocurrency exchange, P2P Margin trading, P2P Margin lending, OTC
URLwww.kucoin.com

Kucoin is a cryptocurrency exchange currently registered in the Seychelles.[1]

Kucoin was initially based in China, then moved to Singapore following the Chinese government's restrictions on cryptocurrency companies, and subsequently to the Seychelles.[2][3]

Kucoin provides services such as NFT trading, spot trading, margin trading, P2P fiat trading, futures trading, staking, lending and other investment vehicle that focuses on cryptocurrency and blockchain firms.[4] Kucoin own it's own crypto token known as Kucoin Shares (KCS), which powers the Kucoin (KCS and KCC) ecosystem.[5][6]

In 2022, Kucoin was named among the top 6 cryptocurrency exchanges in terms of volume of trade.[7][8]

History[edit]

Kucoin was founded in 2017 by Chun Gan, Ke Tang, Michael Gan and Johnny Lyn, who is the current CEO.[2] Michael served as the first CEO of Kucoin.[4] In November 2018, Kucoin raised $20 million in a series A funding round led by IDG Capital, Matrix Partners and Neo Global Capital.[9]

KuGroup was formed in 2020 to manage the three business divisions in the company, including KuCoin Global, KuCloud and KuChain, and KCS Business Group. Michael Gan was appointed chairman of KuGroup, while Johnny Lyu was appointed CEO of KuCoin Global.[3] In October 2021, KuCoin launched its crypto social trading app KuCoin S[10]

KuCoin raised $150 million in a series B funding round led by Jump Crypto in May 2022, giving it a valuation of $10 billion.[11][12] In July 2022, Kucoin announced a $10 million investment from trading firm Susquehanna International Group (SIG). The two parties agreed to collaborate in blockchain startup incubation and Kucoin ecosystem building.[5] 

2020 Hack[edit]

In September 2020, Kucoin announced it had suffered a major security breach that saw $281 million of crypto assets stolen.[13][14] KuCoin CEO, Johnny Lyu disclosed in a statement that the hack occurred after private keys linked to crypto wallets got exposed. He added that the findings of the internal security audit report, revealed that part of Bitcoin, ERC-20, and other tokens in KuCoin’s hot wallets were transferred out of the crypto exchange.[15] Kucoin offered rewards of up to $100,000 to anyone who could provide valid information regarding the hack.[16] North Korean hacker crew Lazarus Group was accused of carrying out the hack, which was dubbed the biggest cryptocurrency hack of 2020.[17][18]

In October 2020, KuCoin announced that $201 million in cryptocurrency had been recovered and said perpetrators had been caught.[19][19] In February 2021, CEO, Johnny Lyu said in a blog post that it had “cooperated with exchange and project partners to recover $222 million (78%), cooperated with law enforcements and security institutions to recover $17.45 million (6%) and insurance fund covered the remaining part, about $45.55 million (16%).[14][16][20]

Legal Status[edit]

United States[edit]

In March 2023, New York's attorney general Letitia James sued KuCoin for failing to register with the state before letting investors buy and sell cryptocurrencies on its platform.[21] The attorney general stated that Kucoin violated the Martin Act, by transacting in cryptocurrencies, selling the product "KuCoin Earn" to generate income for itself and investors, and wrongfully calling itself an "exchange."[22][23] In December 2023, after a long legal battle, Kucoin agreed to block New York users from its platform and pay $22 million to settle the lawsuit.[24][25]

In March 2024, The United State Commodity Futures Trading Commission (CFTC) filed criminal charges against KuCoin and two of its founders, accusing the cryptocurrency exchange of violating U.S. anti-money laundering laws by failing to vet customers, allowing billions of dollars in illicit funds to be transferred since its founding in 2017[26][27] Prosecutors said Kucoin sought business from U.S. customers without registering with the Treasury Department and putting in place procedures to verify clients' identities as required by U.S. law.[27][28] KuCoin co-founders, Chun Gan and Ke Tang, were also charged with related conspiracy charges.[2]

Canada[edit]

In June 2021, The Ontario Securities Commission (OSC) issued a statement alleging that KuCoin trading platforms failed to comply with the province’s securities law. OSC stated that KuCoin was operating an unregistered crypto asset trading platform and encouraging Canadian customers to trade crypto asset products that are securities and derivatives on the platform.[29] on July 22, 2022, OSC obtained orders permanently banning KuCoin from participating in Ontario’s capital markets and requiring it to pay a $2-million administrative penalty, plus $96,550.35 towards the costs of the OSC’s investigation.[30]


Netherlands[edit]

The Dutch central bank in December 2022 issued a statement saying cryptocurrency exchange KuCoin was operating in the Netherlands without registration.[31] The central bank underlined that the exchange is "not in compliance with the Anti-Money Laundering and Anti-Terrorist Financing Act and is illegally offering services for the exchange between virtual and fiduciary currencies."[31][32] KuCoin responded through its spokesperson in an email, stating that "KuCoin is not a Dutch entity and does not have an office in the Netherlands."[32]

United Kingdom[edit]

In October 2023, The United Kingdom's Financial Conduct Authority (FCA) added to its warning list over 140 digital asset companies. The statement stated that KuCoin and the other digital asset companies lacked the regulatory approval to provide services in the UK market.[33]

References[edit]

  1. ^ Russell, Jon (2018-11-14). "Another crypto exchange goes old school as KuCoin raises $20M from VCs". TechCrunch. Retrieved 2024-04-09.
  2. ^ a b c Sun, Mengqi (2024-04-10). "KuCoin and Its Founders Face Criminal Charges Over Money-Laundering Violations - WSJ". WSJ. Archived from the original on 2024-04-10. Retrieved 2024-04-11.
  3. ^ a b Capon, Andrew (April 16, 2020). "Singapore Court Locks Crypto Exchange KuCoin's Web Domain". Cointelegraph. Retrieved April 11, 2024.
  4. ^ a b "KuCoin's derivatives platform launching bitcoin monthly futures in 'few weeks'". Yahoo Finance. 2019-10-17. Retrieved 2024-04-10.
  5. ^ a b "Cryptocurrency based KuCoin secures $10 million investment from trading firm SIG". Financialexpress. 2022-07-21. Retrieved 2024-04-10.
  6. ^ "Kucoin raises $150 million in a pre-series B funding round". Financialexpress. 2022-05-10. Retrieved 2024-04-10.
  7. ^ "Factbox: Top crypto exchanges by volume | Reuters". Reuters. 2022-11-09. Archived from the original on 2022-11-09. Retrieved 2024-04-10.
  8. ^ Livemint (2022-05-11). "Crypto platform KuCoin raises $150 million at $10 billion valuation". mint. Retrieved 2024-04-10.
  9. ^ "Singaporean Crypto Exchange KuCoin Raises $20 Million Series A". Yahoo Finance. 2018-11-18. Retrieved 2024-04-10.
  10. ^ "KuCoin reveals crypto social trading app KuCoin S". Yahoo Finance. 2021-10-27. Retrieved 2024-04-10.
  11. ^ "Crypto Exchange KuCoin Scores Funding at $10 Billion Valuation". Bloomberg.com. 2022-05-10. Retrieved 2024-04-10.
  12. ^ "Crypto exchange KuCoin valued at $10 billion in latest funding round | Reuters". Reuters. 2022-05-10. Archived from the original on 2022-05-10. Retrieved 2024-04-10.
  13. ^ "These are the largest cyber thefts of the past decade—and 80% of them involve Bitcoin". Fortune. Retrieved 2024-04-11.
  14. ^ a b "The real victims of mass crypto-hacks that keep happening". 2021-08-25. Retrieved 2024-04-11.
  15. ^ Adesina, Olumide (2020-09-27). "Hackers, expose crypto wallets worth $150 million at Kucoin". Nairametrics. Retrieved 2024-04-11.
  16. ^ a b Brewster, Thomas. "North Korean Hackers Accused Of 'Biggest Cryptocurrency Theft Of 2020'—Their Heists Are Now Worth $1.75 Billion". Forbes. Retrieved 2024-04-11.
  17. ^ Nichols, Michelle; Satter, Raphael (February 10, 2021). "U.N. experts point finger at North Korea for $281 million cyber theft, KuCoin likely victim". Reuters. Retrieved April 11, 2024.
  18. ^ "Largest Crypto Hacks in History: Have Exchanges Learned Anything From Their Mistakes? | CoinMarketCap". CoinMarketCap Academy. Retrieved 2024-04-11.
  19. ^ a b "Hacked Crypto Exchange KuCoin Resumes Deposit, Withdrawal Services for All Tokens". Yahoo News. 2020-11-22. Retrieved 2024-04-11.
  20. ^ "Hackers steal $320 mn in crypto: Here are the 10 biggest digital currency thefts of all time". CNBCTV18. 2022-02-03. Retrieved 2024-04-11.
  21. ^ "Crypto Exchange KuCoin Sued in New York's Industry Crackdown". Bloomberg. 9 March 2023. Retrieved 2024-04-11.
  22. ^ Jonathan, Stempel (March 10, 2023). "New York sues KuCoin, expands cryptocurrency crackdown". Reuters. Retrieved April 11, 2024.
  23. ^ "N.Y. Attorney General Labels Ether a Security, Injecting Fresh Confusion Into Crypto Legal Debate". WSJ. Retrieved 2024-04-11.
  24. ^ "KuCoin to Pay $22 Million, Exit NY Market to Resolve Lawsuit". Bloomberg. 12 December 2023. Retrieved 2024-04-11.
  25. ^ "Crypto Exchange KuCoin Pays $22 Million to Settle Lawsuit, Will Exit New York". WSJ. Retrieved 2024-04-11.
  26. ^ "DOJ accuses crypto exchange KuCoin of money laundering violations and receiving billions in suspicious funds". Fortune Crypto. Retrieved 2024-04-11.
  27. ^ a b "DOJ accuses crypto exchange KuCoin of money laundering violations and receiving billions in suspicious funds". Yahoo Finance. 2024-03-26. Retrieved 2024-04-11.
  28. ^ Reuters (March 27, 2024). "US charges KuCoin crypto exchange with anti-money laundering failures". Reuters. Retrieved April 11, 2024. {{cite news}}: |last= has generic name (help)
  29. ^ "KuCoin, Affiliates Not Registered In Ontario, Regulator Warns In Latest Advisory". International Business Times. 2022-08-24. Retrieved 2024-04-11.
  30. ^ Shecter, Barbara (June 22, 2022). "OSC metes out penalties, market ban in pair of crypto trading cases". Financial Post. Retrieved April 11, 2024.
  31. ^ a b Reuters (December 15, 2022). "Dutch central bank warns that KuCoin operating without registration". Reuters. Retrieved April 11, 2024. {{cite news}}: |last= has generic name (help)
  32. ^ a b "KuCoin Responds To DNB's Warning About 'Illegally Offering Services' In The Netherlands". International Business Times. 2022-12-18. Retrieved 2024-04-11.
  33. ^ "Huobi, KuCoin Among Crypto Firms Added to UK Watchdog's Warning List". Bloomberg. 9 October 2023. Retrieved 2024-04-11.

External Links[edit]

Retrieved from "https://en.wikipedia.org/w/index.php?title=Draft:Kucoin&oldid=1219877766"