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KuCoin CEO addresses rumours surrounding FTX, FTT exposure

12 Nov, 20223 min readOther
KuCoin CEO addresses rumours surrounding FTX, FTT exposure

KuCoin CEO, Johnny Lyu, has explained in a number of tweets today that Kucoin has been transparent with its users since day one of building the hybrid centralized/decentralized cryptocurrency exchange.

From day 1 of building KuCoin, we have been transparent to our users. The overview of some of KuCoin’s hot and cold wallet addresses are clickable for their current holdings. — Johnny_KuCoin (@lyu_johnny) November 11, 2022

Lyu’s string of tweets followed his earlier denial of “exposure on FTX or FTT” as speculated by Cobie, the host of the crypto podcast UpOnly.

No, it’s false.KuCoin has no exposure on FTX or FTT. — Johnny_KuCoin (@lyu_johnny) November 11, 2022

Disclosure of Kucoin Major Holdings

Lyu disclosed Kucoin’s hot and cold wallet addresses and holdings within one of the tweets. The total holdings included:

  • BTC (20,504 BTC)
  • ETH (180,299 ETH)
  • USDT (1,075,909,241 USDT)
  • USDC (365,722,839 USDC)
  • KCS (69,601,075 KCS)
  • The holdings snapshot was taken on Nov. 11 at 7:00 UTC and does not represent all of Kucoin’s holdings. Only major tokens on BTC, ETH, TRX, KCC, ALGO, ABR, OPT, and EOS are included. The full December audit report “will give even greater detail.”

    Lyu continues, describing Kucoin as the “No. 1 Altcoin exchange” that also provides “over 700+ tradable cryptocurrencies.” He explains that the wallet details (listed above) are the five major coins made public today and that the disclosure marks KuCoin’s first step in building public trust.

    Additionally, Lyu explains that a total of 29,696 ETH is currently being staked as the Ethereum Proof-of-Stake (PoS) node, and that “each node has 32 ETH on the address.”

    “Due to the excessive number of node addresses, we will not disclose them one by one in our blog.”

    In their latest press release, Kucoin have reiterated that they are working on the Merkle-tree proof-of-reserves – as proposed by CZ – and are currently awaiting the completion of an audit through the third-party auditor, Armanino LLP. Following the audit – which will require around a month to complete – Kucoin stated that they “will publish the proof in early December.”

    The Domino Effect

    KuCoin isn’t the first of exchanges to be pushed to disclose its proof-of-reserves following rumors of FTX exposure. Crypto.com CEO, Kris Marszalek also spoke out in response to Cobie having already addressed Crypto.com insolvency rumors.

    It’s false @cobieI spoke about the extent of our exposure to FTX 2 days ago:— Kris | Crypto.com (@kris) November 11, 2022

    At the time of writing, KuCoin Token (KCS) price is $7.83, and is down 6.56% over the last 24 hours.

    Josh has been writing for a decade and is passionate about mainstream crypto adoption, bringing positive financial change to the masses through crypto and decentralized finance as a whole.

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