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Reddit User Calls Out KuCoin Over ≈$50,000 Stuck On Exchange

Picture of the KuCoin app open on a mobile phone with two bitcoins next to it
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It was heat on crypto exchange KuCoin recently after a Reddit user invited them to Reddit regarding funds held on the exchange. The user first took to Reddit to express his frustration in an open letter to CEO Johnny Liu after making no progress with customer support representatives. According to user data, the exchange was blocking $50,000 worth of cryptocurrency from the exchange.

The user explained that KuCoin had announced that it would support a new BCH fork, eCash (XEC), which prompted them and several others to invest in the asset in the exchange. The problems arose when the exchange ran out of liquidity for the cryptocurrency. KuCoin users realize that they cannot sell their holdings without doing so at a significant loss (selling for cents on the dollar).

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However, a sinister problem arose when they found out that they couldn’t move coins either. Since then, the user has claimed that $50,000 worth of cryptocurrency has been withheld by the exchange for more than six months and they are not allowed to transfer their coins.

Open a letter to the CEO of KuCoin

Reddit user u/BCHcain first drew attention to the issue when he sent an open letter to CEO Johnny Liu about four days ago. In the open letter, they included screenshots of their communications with support staff going back at least six months. The user explained that KuCoin was giving them the workaround with no real indication that the issue had been resolved and they had “receipts” to back this up.

CEO Johnny Liu responded to this open letter about three days after it was posted, giving what could be described as a low-effort response to a clearly troubled user.

“Thanks for bringing it. Upgrade is underway, and as it is not just a simple rebranding or rebranding, we still need some time to complete it. Thank you for your patience and understanding,” Liu wrote.

Reddit users called out the CEO about the response, noting that the answer proved everything the user claimed in his posts; That the exchange doesn’t seem interested in solving their problem.

calling society

Four days after the open letter was posted, u/BCHcain sent it back to Reddit. This time inviting the community to help amplify the problem, stating that if it happened to them, it could happen to anyone. This follow-up post has received far more attention than the open letter.

This issue has raised concerns about the power of centralized exchanges over user funds. In a way, these centralized exchanges control users’ funds in the same way as banks, which is something crypto enthusiasts are desperately trying to get rid of.

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A cryptocurrency exchange on the same platform was also called by another user who claimed that KuCoin was using Cloudfare to block access to the platform during bull rallies in order to force users to liquidate and then take advantage of these liquidations.

KuCoin has yet to respond to the second post. However, he continues to spark conversations about issues with KuCoin and CEXes in general. At the time of writing, the post has received 5.3 thousand upvotes and 1.6 thousand comments.

Featured image from CoinDesk, chart from TradingView.com

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