KuCoin saw a net outflow of over $780 million across multiple chains over the past 24 hours after the U.S. Department of Justice lodged charges against it on Tuesday, according to on-chain data.
Data from crypto analytics firm Nansen showed that KuCoin experienced a total outflow of $882 million in the last 24 hours as of Wednesday noon in Asia on several networks and inflow of $99 million, with a net outflow of $783 million. The data set covers flows on Ethereum, BNB Chain, Avalanche, Fantom, and Polygon chains.
The notable exodus from KuCoin comes after the DOJ unveiled the indictment on Tuesday against KuCoin and two of its founders, alleging that they violated anti-money laundering laws. The Commodity Futures Trading Commission also reiterated in the KuCoin complaint that ether and several other cryptocurrencies are commodities.
“Given past incidents, its expected that any large regulatory crackdown would result in a surge in outflows, but as long as the exchange has held customer deposits and funds 1:1, it should remain solvent even under such stress,” Martin Lee, Content and Communications Lead of Nansen, told The Block.
The exchange has crypto holdings of $5.1 billion, according to Nansen.
