KuCoin Refutes Claims of Almost 80% Drop in Bitcoin Reserves
KuCoin has publicly denied recent claims that its Bitcoin reserves have plummeted by more than 77% since mid-2023, calling the circulating figures “misleading and inaccurate.”
The response comes after a report from Onchain School, citing CryptoQuant data, alleged KuCoin’s BTC holdings dropped from 18,300 BTC in June 2023 to just 4,100 BTC by April 2025.
The sharp decline, totaling around 14,200 BTC, was attributed by analysts to KuCoin’s implementation of stricter know-your-customer (KYC) requirements in August 2023. At the time, the exchange said the move was aimed at curbing illicit activity such as money laundering and terrorism financing.
According to Onchain School, the new compliance rules may have prompted user withdrawals due to growing privacy concerns, triggering a significant outflow of funds. They also suggested KuCoin’s reserve trend fits into a wider pattern of declining Bitcoin reserves across centralized exchanges, though they noted the extent of KuCoin’s drop was more severe.
KuCoin, however, dismissed the interpretation of the data, maintaining that its reserve management and operational transparency remain intact. The exchange emphasized that on-chain snapshots often lack necessary context and should not be used in isolation to draw conclusions about financial health.
The incident has reignited the debate around transparency in centralized crypto platforms and how KYC policies may impact user trust and liquidity retention.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
