The cryptocurrency exchange KuCoin has announced an airdrop of $10 million worth of Bitcoin and KuCoin (KCS) tokens to its loyal clients, in spite of recent accusations from the US Department of Justice.
KuCoin’s chief executive officer, Johnny Lyu, made the announcement in a blog post. The US Justice Department has challenged and charged the exchange and its founders in court, prompting this action.
Addressing the current challenge and showing thanks with a $10M giveaway, our CEO @lyu Johnny penned a message to the #KuCoin community. In the letter, Johnny thanked everyone for their continuous support.
Johnny Lyu, CEO of KuCoin, sent a message to the exchange’s users on March 27 and shared it on the blog to show his appreciation. Lyu reaffirmed KuCoin’s dedication to protecting user funds and meeting regulatory requirements in light of recent difficulties, such as withdrawal delays on March 26th and 27th. During this turbulent time, he expressed gratitude to users for their support and confidence.
Lyu said that ever since their participation, KuCoin has strived to expand in tandem with the cryptocurrency market and increase the sector’s worldwide renown, admiration, and love. He likened the airdrop to the exchange’s previous effort to compensate investors impacted by the Confido rug pull.
The CEO clarified that the large volumes caused withdrawal delays for certain consumers, who may have been more careful while using the exchange. Initiating a unique airdrop event worth $10 million in KCS and BTC, KuCoin aims to express gratitude to users for their support and patience. Lyu emphasized that the term “People’s Exchange” originated from this proactive remuneration, which reflected the community’s endorsement of KuCoin. “I said,” he repeated,
“The term “People’s Exchange” was born out of this proactive compensation—a clear indication of the community’s initial support for us. We take great pride in being known as “People’s Exchange,” and we have always valued this unique trust.
Despite Lyu’s omission of any reference to the exchange’s legal troubles, the airdrop is an expression of appreciation to the faithful users who supported KuCoin during its difficult time. In three days, we will disclose the detailed guidelines for the airdrop to make sure that people have all the information they need.
Considering the ongoing legal proceedings against KuCoin, the airdrop’s timing is interesting. U.S. Department of Justice agents accused KuCoin and two of its founders with BSA breaches and “conspiring to run an unregistered money-transmitting company” on March 26.
The United States Department of Justice said that Chun Gan and Ke Tang, the creators of KuCoin, committed a deliberate failure to implement and enforce an anti-money laundering policy at the exchange, which allowed users to launder and fund terrorists. The U.S. Department of Justice claims that KuCoin handled more than $5 billion in transactions and transmitted more than $4 billion in “suspicious and illicit monies.”
Along with KuCoin, the Commodity Futures and Trade Commission (CFTC) levied many Commodity Exchange Act breaches against the cryptocurrency. Fines and trading prohibitions are on the table from the CFTC, while forfeiture and criminal penalties are on the table from the DoJ.
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