KuCoin, a prominent cryptocurrency exchange, recently confirmed that one of its users is responsible for initiating thousands of memecoin scams. Although the user’s identity has been exposed, the exchange stated it would not freeze the individual’s assets unless it receives an official notice from law enforcement agencies.
Two days ago, a Twitter user detected a wallet address that had been launching between two and five memecoins daily for the past two years. Another member of the crypto community subsequently pointed out that the wallet addresses were associated with KuCoin. Currently, Etherscan, a renowned blockchain explorer, has marked the address in question as a fake phishing wallet.
In an exclusive statement provided to media outlet Cointelegraph, KuCoin reportedly verified that the suspicious wallet address does indeed belong to one of its users. Johnny Lyu, a representative from the exchange, underscored that KuCoin would not take any action against the account until receiving a notice from the relevant authorities. Lyu explained:
“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.”
Moreover, the exchange urged community members to remain vigilant and report any suspicious behavior to the police, submitting necessary documentation to KuCoin’s team. Lyu emphasized that the platform is prepared to cooperate with law enforcement once it receives the proper documentation.
This incident highlights the importance of maintaining transparency and accountability in the cryptocurrency space. As the industry continues to grow, it is essential for exchanges and users to collaborate in addressing potential threats, ensuring the safety and security of all parties involved.
