KuCoin Rejects Claims of Bitcoin Reserve Plunge, Cites Misleading Data

KuCoin Reassures Users With Proof of Reserves Report

KuCoin has disputed recent allegations that its Bitcoin reserves have plummeted by over 77% since mid-2023, calling the circulating figures misleading and unrepresentative of the exchange’s financial stability. The rebuttal came after blockchain analytics firm Onchain School reported a drastic decline in KuCoin’s Bitcoin holdings, claiming the exchange’s reserves fell from 18,300 BTC in June 2023 to approximately 4,100 BTC by April 2025, a reduction of nearly 14,200 BTC. 

The report attributed the alleged drop to the implementation of KuCoin’s Know Your Customer (KYC) policy, introduced in August 2023, suggesting the stricter identity verification measures led to mass withdrawals by users concerned about privacy. Onchain School further claimed that KuCoin’s purported Bitcoin reserve reduction was more pronounced than similar trends observed across other centralized exchanges, hinting at a disproportionately negative user response.

In response, KuCoin issued a public statement denying the reported figures and emphasizing its ongoing commitment to transparency and security within the digital asset market. The exchange stressed that such reports could harm user confidence and propagate unnecessary fear across the crypto industry. 

To substantiate its position, KuCoin published its latest Proof of Reserves report, marking the 30th such disclosure by the platform. The report details KuCoin’s current reserve ratios, presenting a more favorable picture than Onchain School’s analysis. According to the exchange, its Bitcoin reserve ratio stands at 106%, covering approximately 9,751 BTC in user balances and 10,306 BTC held in exchange-controlled wallets. KuCoin also disclosed reserve ratios for other major assets, showing Ethereum reserves at 116%, Tether at 114%, and USD Coin at 109%.

KuCoin underscored that its Bitcoin reserve figures indicate overcollateralization, asserting that it holds more Bitcoin than it owes to its users, thereby reinforcing the platform’s solvency. The exchange reiterated its concern over the potential impact of inaccurate reports, warning that misleading data could undermine trust in the broader crypto ecosystem. While the debate over KuCoin’s reserve status continues, the exchange maintains that its financial health remains strong, backed by verifiable reserve data and a commitment to user security.

This article has been refined and enhanced by ChatGPT.