Picture of the KuCoin app open on a mobile phone with two bitcoins next to it

The warmth has been on crypto change KuCoin lately after a Reddit person referred to as them out on Reddit concerning funds being held on the change. The person had first taken to Reddit to vent their frustrations in an open letter to CEO Johnny Lyu after making no progress with its buyer help representatives. In keeping with the person’s statements, the change was withholding ≈$50Ok value of crypto on the change.

The person defined that KuCoin had introduced that they might be supporting a brand new BCH fork, eCash (XEC), main them and lots of others to spend money on the asset on the change. Issues arose when the change had run out of liquidity for the cryptocurrency. KuCoin customers notice that they may not promote their holdings with out doing so at a big loss (promoting for cents to the greenback).

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Nevertheless, a a lot sinister concern arose once they discovered they may not switch the cash out both. Since then, the person claimed that they’ve had ≈$50,000 value of crypto being withheld by the change for over six months and nonetheless haven’t been allowed to maneuver their cash.

Open Letter To KuCoin CEO

The Reddit person who goes by the username u/BCHcain had first drawn consideration to the problem once they posted an open letter to CEO Johnny Lyu about 4 days in the past. Within the open letter, they embrace screenshots of their communications with the help employees relationship again at the least six months. The person defined that KuCoin had been giving them the runaround with no actual indication of fixing the problem and had ‘receipts’ to again this up.

CEO Johnny Lyu had responded to this open letter about three days after posting, giving what could possibly be described as a low-effort response to a clearly distressed person.

“Thanks for bringing it up. The improve is underway, and because it’s not only a easy rename or rebrand, we nonetheless want a while to finish it. Thanks to your endurance and understanding,” Lyu wrote.

Reddit customers had referred to as out the CEO over the response, stating that the reply proved every part that the person had claimed of their submit; that the change didn’t appear involved in fixing their concern.

Calling On The Group

4 days after the open letter had been posted, the u/BCHcain had as soon as once more posted to Reddit. This time calling on the group to assist amplify the problem, stating that if it may occur to them, then it may occur to anybody. This follow-up submit garnered significantly extra consideration than the open letter.

The difficulty has raised considerations over the ability centralized exchanges have over the funds of customers. In a approach, these centralized exchanges management person funds the identical approach as banks, one thing that the crypto lovers are fervently making an attempt to put off.

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The crypto change had additionally been referred to as out on the identical platform by one other person who claimed that KuCoin was utilizing Cloudfare to disclaim entry to the platform throughout bull rallies with a view to drive customers to liquidate after which revenue from these liquidations.

KuCoin is but to answer the second submit. Nevertheless, it continues to spark conversations round points with KuCoin and CEXes typically. As of the time of writing, the submit has obtained 5.3K upvotes and has 1.6K feedback.

Featured picture from CoinDesk, chart from TradingView.com