Reddit user calls KuCoin for over $ 50,000 stuck on exchange
The heat was on the KuCoin crypto exchange recently after a Reddit user called them on Reddit regarding funds held on the exchange. The user first took to Reddit to express his frustrations in an open letter to CEO Johnny Lyu after making no progress with his customer support reps. According to user statements, the exchange was withholding $ 50,000 worth of crypto from the exchange.
The user explained that KuCoin announced that it will support a new BCH fork, eCash (XEC), leading them and many others to invest in the asset on the stock exchange. Problems arose when the exchange ran out of cash for the cryptocurrency. KuCoin users realize that they could not sell their holdings without doing so with a large loss (selling for pennies on the dollar).
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However, a very sinister problem arose when they found out that they couldn’t transfer the parts either. Since then, the user has claimed that he has withheld $ 50,000 in crypto through the exchange for more than six months and still has not been allowed to move his coins.
Open letter to the CEO of KuCoin
The Reddit user who uses the username u / BCHcain first drew attention to the issue when he posted an open letter to CEO Johnny Lyu about four days ago. In the open letter, they include screenshots of their communications with support staff dating back at least six months. The user explained that KuCoin gave them the ride without any real indication of fixing the issue and had “receipts” to back it up.
CEO Johnny Lyu responded to the open letter about three days after it was posted, giving what could be described as an effortless response to a user clearly in distress.
“Thanks for raising it. The upgrade is in progress, and since this is not just a simple name or rename change, we still need some time to complete it. Thank you for your patience and understanding, ”Lyu wrote.
Reddit users had challenged the CEO about the response, noting that the response proved everything the user said in their post; that the exchange didn’t seem interested in solving their problem.
Appeal to the community
Four days after the open letter was posted, the u / BCHcain had re-posted to Reddit. This time calling on the community to help amplify the problem, stressing that if it could happen to them, it could happen to anyone. This follow-up post received a lot more attention than the open letter.
The issue has raised concerns about the power of centralized exchanges over user funds. In a way, these centralized exchanges control user funds the same way banks do, which crypto enthusiasts are fervently trying to suppress.
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The crypto exchange was also called on the same platform by another user who claimed that KuCoin was using Cloudfare to deny access to the platform during bull rallies in order to force users to liquidate and then profit. of these liquidations.
KuCoin has yet to respond to the second message. However, it continues to spark conversations about issues related to KuCoin and CEXs in general. At the time of writing, the post received 5.3K upvotes and 1.6K comments.
Featured image from CoinDesk, chart from TradingView.com