Kucoin users, are your withdrawals okay?

[bbc.reporter]

In an interview with Forbes magazine, Sam Bankman-Fried mentioned that there are smaller exchanges that are now secretly insolvent. He did not mention specific exchanges, however, there is someone on Twitter who said that there are rumors that Kucoin will halt withdrawals in the near future.

There was also someone else who replied that Kucoin has started implementing KYC before being approved to withdraw.

I am not very sure if this is true or fud. This is why I am asking you. I traded in Kucoin last week and I had no problems using the exchange. I deposited my cryptocoins and withdrawn my stablecoins within 1 hour.



I am hearing rumors that KuCoin is about to halt withdrawals in the near future.

I have closed all open trades and immediately taken all money off KuCoin. From what I’ve been hearing, this ‘rumor’ will soon be a reality. Do not suffer the same fate as others who had their money stolen by irresponsible platforms.

Source https://mobile.twitter.com/buckleupbrandon/status/1542933313043693568

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[Rikafip]

In an interview with Forbes magazine, Sam Bankman-Fried mentioned that there are smaller exchanges that are now secretly insolvent. He did not mention specific exchanges, however, there is someone on Twitter who said that there are rumors that Kucoin will halt withdrawals in the near future.

Well, Kucoin can be hardly called "smaller exchange" so I don't see any connections between what that FTX guy mentioned and Kucoin itself. He is generally true thoigh, a lot of crypto exchanges will disappear during bear market as God know swhat they did with deposited money (I wouldn't be surprised if they deposited client's money into Celsius and similar platforms)
 

There was also someone else who replied that Kucoin has started implementing KYC before being approved to withdraw.

That's always a possibility when withdrawing, especially if you are doing it with bigger amounts.

I am not very sure if this is true or fud.

Since that source is just some random guy on Twitter is hard to say, but what he is saying about withdrawing your money from there is absolutely true, no one should hold their crypto on exchanges, including the most popular ones.

[Charles-Tim]

Kucoin has been known as a no-KYC exchange by many people, but not a decentralized exchange, coins can be freezed, account can be suspended or blocked, users can be enforce to provide identity documents and other information needed to complete identity verification. But, I see this to be partaining to just only one user or few users if they see the person's account to be suspicious. Any centralized exchange can do it. Nobody should be surprised if an exchange user's account is suspended one day and KYC is demanded for.

So, I do not see this as a reason Kucoin to enforce all their customers to provide KYC documents. But, we should know that centralized exchanges have full control over their users coins and funds generally, the reason we should not leave our coins on exchanges, anyone not used for active frequent trade should be moved to a noncustododial wallet.

Conclusively, anyone using a centralized exchange should always know that the exchange can at anytime freeze their funds or block their account and demand for KYC.

[noorman0]

And who would have thought that some users confirmed on twitter that they actually withdrawb all their portfolio. Johnny Liu has denied these allegations and said that he would take serious steps against the FUD spreaders. source

It's a relief because I personally still have high hopes for Kucoin not to make even crazier KYC rules any time soon, I have no plans to withdraw my portfolio in this bear market.

[o_e_l_e_o]

Johnny Liu has denied these allegations and said that he would take serious steps against the FUD spreaders. source

"We will take legal action against anyone who tells other people to withdraw their coins from our exchange" doesn't exactly fill me with confidence, either in the leadership or the solvency of said exchange.

We have seen multiple crypto based companies and exchanges go bankrupt over the last couple of weeks. We have seen several more receive bailouts of hundreds of millions of dollars. We know several more exchanges are "secretly insolvent" and teetering on the brink of collapse. It is hardly FUD to suggest to people that the only safe place for their coins right now is in their own wallets. The CEO of Celsius was saying the same things about how it was all unfounded FUD shortly before they collapsed too.

I have no plans to withdraw my portfolio in this bear market.

Why is your portfolio on an exchange at all? The only coins which should be anywhere other than your own wallet are coins which are being actively traded.

[hugeblack]

It is difficult to classify Kucoin as a small platform and it is hard to believe that bankruptcy for this platform may take a long time (more than several days), so if there are financial problems, it will not appear in the form of preventing people from withdrawing their currencies, but rather reducing employees, increasing withdrawal and deposit fees, increasing Number of closed accounts and a long list.

We can know the source of these rumors, but prevention is better than cure, never leave your money on the platform. (deposit exchange withdrawal)

[dkbit98]

In an interview with Forbes magazine, Sam Bankman-Fried mentioned that there are smaller exchanges that are now secretly insolvent. He did not mention specific exchanges, however, there is someone on Twitter who said that there are rumors that Kucoin will halt withdrawals in the near future.

He is just trying to make better deal because he is trying to purchase other small crypto companies and expand his reach, especially after their deal with Celsius is gone bust.
I don't think this has any connection with Kucoin that is one of the biggest crypto exchanges in the world, but I would still not keep any coins on Kucoin, FTX or any other centralized exchanges.
If you are not big time trader, than se exchanges only for trading, and non-custodial wallets for holding your coins.

Why is your portfolio on an exchange at all? The only coins which should be anywhere other than your own wallet are coins which are being actively traded.

I have even better proposition.
Pretend like you don't have any portfolio and uninstall all portfolio tracking apps, especially during bear markets, and you will sleep much better

[bbc.reporter]

And who would have thought that some users confirmed on twitter that they actually withdrawb all their portfolio. Johnny Liu has denied these allegations and said that he would take serious steps against the FUD spreaders. source

It's a relief because I personally still have high hopes for Kucoin not to make even crazier KYC rules any time soon, I have no plans to withdraw my portfolio in this bear market.

It appears this fud is spreading more widely than I have expected. In any case, it also appears that there are not many users of Kucoin in bitcointalk?

Another bad news, @samczsun has tweeted another hash of a text string or a hash of hash of a text string. Some have mentioned that this is bad news about USDC. Can anyone decode it? I have tried to do it, however, it does not work in all the websites I have tried. The last hashed text string he tweeted said 3AC is insolvent. The tweet was made 1 month before it was confirmed.



9684c022748fed2b3b076cde6000d1dc8301e508f19382e2b510f84aed260380

ddcf464e8dd47153e861530dfda82ccebc9c8c0ea86159f6d7a8a17e2916ce17

Source https://mobile.twitter.com/samczsun/status/1542968371578167296

[eaLiTy]

~

Why is your portfolio on an exchange at all? The only coins which should be anywhere other than your own wallet are coins which are being actively traded.

I have even better proposition.
Pretend like you don't have any portfolio and uninstall all portfolio tracking apps, especially during bear markets, and you will sleep much better

@noorman0 said he is holding his portfolio in exchanges and for that o_e_l_e_o asked why even bother holding their portfolio in exchanges and i am surprised that people are still using exchanges to hold their funds for the long term.

~
It appears this fud is spreading more widely than I have expected. In any case, it also appears that there are not many users of Kucoin in bitcointalk?

Was holding stable currency in Kucoin in order to buy BTC at appropriate time and when the news started to spread i withdrew them without any issues.

Another bad news, @samczsun has tweeted another hash of a text string or a hash of hash of a text string. Some have mentioned that this is bad news about USDC.

I did not decode them but there is another rumor that Circle is loosing money big time because crypto companies are borrowing tons of USDC, which they cannot pay back and some of these situations were evident in the documentations when they filed for the SPAC IPO.
You cannot find USDC audit reports but claims that they are attested by Grant Thornton LLC. 

[The Sceptical Chymist]

I am not very sure if this is true or fud.

Since that source is just some random guy on Twitter is hard to say, but what he is saying about withdrawing your money from there is absolutely true, no one should hold their crypto on exchanges, including the most popular ones.

A lot of people (news organizations included, who should know better) give far too much weight to what random people on Twitter say, and in this case I'm not seeing any evidence that Kucoin is on the verge of insolvency.  And yes, there might be some KYC issues if the amount you want to withdraw is large--but that's included in their ToS if I'm not mistaken, so no shocker there.

It appears this fud is spreading more widely than I have expected. In any case, it also appears that there are not many users of Kucoin in bitcointalk?

I'm guessing those users just don't want to identify themselves for privacy reasons.  Surely you've noticed that most members here speak in generalities most of the time rather than telling the world outright what they're doing.  Anyway, I'd be willing to bet that if there were withdrawal issues happening with Kucoin, we'd be hearing a lot of stuff from the folks who are presently silent. 

It's happened with smaller exchanges like HitBit or HotBit (can't remember which one had frozen up), so you'd better believe there'd be loud noises and multiple threads about it if Kucoin started giving its customers withdrawal problems.

[bbc.reporter]

I am not very sure if this is true or fud.

Since that source is just some random guy on Twitter is hard to say, but what he is saying about withdrawing your money from there is absolutely true, no one should hold their crypto on exchanges, including the most popular ones.

A lot of people (news organizations included, who should know better) give far too much weight to what random people on Twitter say, and in this case I'm not seeing any evidence that Kucoin is on the verge of insolvency.  And yes, there might be some KYC issues if the amount you want to withdraw is large--but that's included in their ToS if I'm not mistaken, so no shocker there.

Agreed. However, after witnessing the insolvencies that has occured in the cryptospace in the last 2 weeks, it might be safer to have some awareness and withdraw our coins from centralized exchanges. I am quite certain everyone will agree with this not your keys, not your coins.

[The Sceptical Chymist]

Agreed. However, after witnessing the insolvencies that has occured in the cryptospace in the last 2 weeks, it might be safer to have some awareness and withdraw our coins from centralized exchanges. I am quite certain everyone will agree with this not your keys, not your coins.

Definitely--hopefully nobody misunderstood what I wrote, which was by no means an endorsement to keep your coins on any exchange for longer than needed.  Especially not after the last few weeks that you mentioned.  At times like these when the price of bitcoin (and altcoins) has plummeted, who knows what's going to come crawling out of the woodwork as far as shady shit being done behind the scenes with even the biggest exchanges. 

It's too bad so many of those exchanges offer services that encourage people to keep their coins with them for extended periods of time, like staking, lending, and such.  I'm sure there's money to be made that way, but it's risky as all hell.

[Darker45]

It's funny how the FUD has actually pushed KuCoin supporters to the other extreme. While the rumor was quickly brushed off as FUD by KuCoin, it isn't without basis. Even Binance once halted Bitcoin withdrawals. Coinbase did it in a different fashion. These exchanges are larger than KuCoin. And now KuCoin supporters are rallying behind their favorite exchange, discounting any insolvency issues, and even trying to be 100% certain that KuCoin will remain liquid amidst this bear market when custodial services are crumbling one after another. It seems the response is more problematic than the FUD itself.

How far-fetched is the idea that this FUD could even be coming from KuCoin itself so that by the time they finally admit to the public their insolvency they could easily point to this FUD as the real culprit?

[stompix]

And who would have thought that some users confirmed on twitter that they actually withdrawb all their portfolio. Johnny Liu has denied these allegations and said that he would take serious steps against the FUD spreaders.

Reminds me of
CZ threatening to sue nikkei over irresponsible journalism when he was already on the plane feeling the country.
Do Kwon calling everyone cockroaches and fud spreaders
Alex Mashinsky twisting "Don’t listen to the FUD-ers, look at the facts"

Every single time I see one of those CEO having a crisis over Twitter and shouting about FUD I have a feeling to go all in and bet they are already bankrupt.
Shouting FUD has become the last step of denial lately.

[Rikafip]

How far-fetched is the idea that this FUD could even be coming from KuCoin itself so that by the time they finally admit to the public their insolvency they could easily point to this FUD as the real culprit?

If they really have in their control all the money that people deposited then FUD can't be used as a reason to be insolvent.

It's too bad so many of those exchanges offer services that encourage people to keep their coins with them for extended periods of time, like staking, lending, and such.  I'm sure there's money to be made that way, but it's risky as all hell.

To be honest, I don't think that people who are willing to hodl on exchanges need no encouragement and they would do it anyway, regardless of the APY exchanges offer which is usually not that great ( afaik 1-2). People just don't like responsibility of being your own bank.

[crwth]

Sam Bankman-Fried is one of the guys who would know if one exchange is insolvent or not. Imagine saving the butts of Voyager and BlockFi just to make amends with all of the crypto community. It will not be a good one if he lets it die. The insolvent exchanges probably asked for help from the FTX founder and told them that it would be hard for them and ask for help.

I'm going to be sad if that's KuCoin; I have known them for a while, but that's probably how it works, and they probably have reached max optimal loaning or something like that and made it insolvent.

[electronicash]

How far-fetched is the idea that this FUD could even be coming from KuCoin itself so that by the time they finally admit to the public their insolvency they could easily point to this FUD as the real culprit?

If they really have in their control all the money that people deposited then FUD can't be used as a reason to be insolvent.

It's too bad so many of those exchanges offer services that encourage people to keep their coins with them for extended periods of time, like staking, lending, and such.  I'm sure there's money to be made that way, but it's risky as all hell.

To be honest, I don't think that people who are willing to hodl on exchanges need no encouragement and they would do it anyway, regardless of the APY exchanges offer which is usually not that great ( afaik 1-2). People just don't like responsibility of being your own bank.

its possible for Kucoin to do it for KCS holders to sell. Kucoin spreads the profit of the exchange to its KCS holder. debts could be rising if the bear market continues for another year. so maybe its time for them to spread fud so less users will share the profit.  its a way to shake off the users holding small amount of KCS.

user who could hold the bags on exchanges, should be wary already and try to withdraw after all you are holding.

[o_e_l_e_o]

I'm sure there's money to be made that way, but it's risky as all hell.

It's a win-win for the exchange though. Risk their users' coins to make themselves profit, and if it all goes to shit then just declare bankruptcy and use your users' deposits to pay off your shareholders. The users however risk everything.

and even trying to be 100% certain that KuCoin will remain liquid amidst this bear market when custodial services are crumbling one after another.

You can never be 100% certain that any exchange is going to remain liquid, since we can't see their books or their wallets. You are always trusting the exchange.

But all is good on Kucoin and there’s no need to panic since the trading volume is still normal and I don’t see any sign that they are halting withdrawal since there’s still a lot of event ongoing and upcoming happening on the exchange right now.

There were no signs from Celsius that they were going to halt withdrawals until they suddenly did. The same for Voyager. No exchange on the brink of insolvency is going to make that obvious. Just because things are running fine right now doesn't mean they will continue to be running fine next week or next month.

For what it's worth, I don't think KuCoin are about to freeze deposits like these centralized lending platforms, but I still wouldn't be storing a single satoshi on any centralized exchange right now.

[bittraffic]

Rumors are rumors until we realize its true and you can't withdraw anymore of your coins. The liquidation is contagious which these lending platforms are halting withdrawals to preserve the value of the platform. While you can still withdraw, do it because you'll never know all of a sudden the rumor is true. I'm not a Kucoin user but just to make sure my funds are safe, I withdraw mine from other exchanges. Better be safe than sorry.

[ultrloa]

How far-fetched is the idea that this FUD could even be coming from KuCoin itself so that by the time they finally admit to the public their insolvency they could easily point to this FUD as the real culprit?

If they really have in their control all the money that people deposited then FUD can't be used as a reason to be insolvent.

It's too bad so many of those exchanges offer services that encourage people to keep their coins with them for extended periods of time, like staking, lending, and such.  I'm sure there's money to be made that way, but it's risky as all hell.

To be honest, I don't think that people who are willing to hodl on exchanges need no encouragement and they would do it anyway, regardless of the APY exchanges offer which is usually not that great ( afaik 1-2). People just don't like responsibility of being your own bank.

user who could hold the bags on exchanges, should be wary already and try to withdraw after all you are holding.

This is really much advisable because exchange could turn things bad and liquidate all of their user so people should think to withdraw their funds immediately after there done buying and selling things on exchange for safety purposes. And they shouldn't worry about the fees since fund security is more important rather than taking risk to store your money on exchangers.