The cryptocurrency exchange platform KuCoin confirmed that a wallet address linked to thousands of memecoin scams belongs to one of its users. The revelation came after a Twitter user exposed a wallet address on April 26, which has been throwing between two and five memecoin rugs every day for the past two years. The wallet addresses were subsequently linked to the platform KuCoin, the Etherscan blockchain explorer marking the address as a phishing wallet.
KuCoin awaits orders from law enforcement before freezing funds
THE CEO of KuCoin, Johnny Lyusaid that while the company acknowledges that the wallet address is associated with one of its users, it will not freeze the account until it receives official notice from law enforcement.
Where the reporting party has provided relevant legal documents, procedures or reporting records, we will assist and cooperate with law enforcement to take temporary risk control measures in accordance with complaints and reports, user agreements and the laws of Seychelles.
The exchange also encouraged community members to report suspicious behavior to the police and to provide the necessary documentation to the KuCoin team. Once the required documents are received, the company is more than willing to cooperate with the authorities to combat fraudulent activity on its platform.
Recent KuCoin Security Breach
This news comes following a KuCoin security breach, which took place on April 24. The exchange’s official Twitter account has been compromised, leading to the publication of fake tweet which led some subscribers to lose their assets. After discovering the breach, KuCoin worked with Twitter to regain control of the account and committed to compensating the victims concerned.
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