KuCoin denies claims of 77% Bitcoin reserve drop, calls figures misleading
- KuCoin released its latest Proof of Reserves report, offering a detailed snapshot of its current digital asset holdings.
- According to the report, KuCoins Bitcoin reserve ratio stands at 106%.
- The data indicates that KuCoin holds more BTC than it owes to its customers.
Crypto exchange KuCoin has refuted claims that it lost over 77% of its Bitcoin (BTC) reserves since mid-2023.
In a public statement, the company described the circulating figures as inaccurate and misleading, emphasizing its ongoing commitment to transparency, user security, and responsible reporting in the digital asset space.
The rebuttal comes in response to a report by blockchain analytics platform Onchain School, which alleged that KuCoins BTC holdings plunged from 18,300 BTC in June 2023 to approximately 4,100 BTC by April 2025a sharp decline of nearly 14,200 BTC.
The report cited data from CryptoQuant, attributing the alleged drop to KuCoins implementation of mandatory Know Your Customer (KYC) rules last year.
KYC policy blamed for alleged Bitcoin outflows
The central argument in Onchain Schools analysis links KuCoins supposed BTC reserve decline to its KYC policy introduced in August 2023.
The new regulation required all users to complete identity verificationa move intended to enhance security and curb criminal activity, including money laundering and terrorism financing.
The analytics firm speculated that the stricter compliance measures led to mass user withdrawals due to privacy concerns.
It also noted that KuCoins alleged reserve drop was steeper than similar trends seen across centralized exchanges, suggesting a more acute user response in this case.
However, KuCoin pushed back on these conclusions, saying the figures do not accurately represent the current state of its reserves and warning that such misinformation could damage trust across the broader crypto industry.
KuCoin publishes proof-of-reserves to counter claims
To counter the narrative, KuCoin released its latest Proof of Reserves reportits 30th to dateoffering a detailed snapshot of its current digital asset holdings.
According to the report, KuCoins Bitcoin reserve ratio stands at 106%, covering approximately 9,751 BTC in user balances and 10,306 BTC in exchange-controlled wallets.
The data indicates that KuCoin holds more BTC than it owes to its customers, reassuring users of the platforms solvency.
In addition to Bitcoin, the report revealed overcollateralization for other major assets:
Ethereum (ETH): 116% reserve ratio
Tether (USDT): 114% reserve ratio
USD Coin (USDC): 109% reserve ratio
KuCoin stated, Were concerned about the spread of false or misleading information by some platforms. Irresponsible reporting misleads users and undermines trust in the crypto ecosystem.
The post KuCoin denies claims of 77% Bitcoin reserve drop, calls figures misleading appeared first on CoinJournal.
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