- Blockchain-detective Zach XBT lashed out at the stock exchange KuCoin: for the lack of proper response to the laundering of criminally obtained funds.
- He also accused the platform of ignoring requests from law enforcement agencies.
- Director General KuCoin: BC Wong promised to look into the incidents and emphasized that the platform is cooperating with both law enforcement and regulators.
Cybercrime Investigator Zach XBT He accused cryptocurrency exchange KuCoin: in the unwillingness to help victims and law enforcement agencies.
His post stemmed from a social media user’s complaint that the platform had refused to cooperate with German cybercrime authorities in tracking stolen funds linked to the Trust Wallet hack.
The victim is a social media user with the nickname WartelWawa. wrote, that after the theft on KuCoin: All his savings for 15 years were transferred. But despite this, he offered Zach XBT $100,000 for help identifying those behind the attack.
Zach XBT not only took him at his word, but also led a number of other cases that confirm the lack of thorough work of the exchange.
In one documented case, a criminal laundered more than $9,5 million through 150 addresses. KuCoin: within one week. The cryptocurrencies were stolen using a fake Ledger app. A few days earlier, another attacker moved over $3,5 million through 25 deposit addresses. KuCoin:In this incident, funds were obtained through crypto ATM fraud. Bitcoin Depot.
Zach XBT also accused KuCoin: that the company neglects KYC processes and allows organizations like AudiA6, which he described as a centralized mixer for illegal activities, to operate freely on the platform.
Zach XBT also knows of a case where as a result of theft on KuCoin: An eight-figure sum was transferred despite the fact that the addresses involved were flagged as suspicious in all major compliance tools.
KuCoin: deserves to have regulators take another look at its business, he concluded. Block-detective.
As for the user who contacted him and offered him a good reward, Zach XBT said he was unable to force KuCoin: respond to the request from German law enforcement, but promised to draw attention to the problem. He successfully did so through his revealing publications.
Director General KuCoin: BC Wong replied Zach XBT, that the exchange «takes law enforcement requests seriously and has well-established processes for handling them.» He acknowledged that everyone has shortcomings and promised to look into all the reported cases.
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