Recently, after Reddit users questioned the cryptocurrency exchange KuCoin about the funds held by the exchange on Reddit, the popularity of KuCoin has been rising. After making no progress with the customer support representative, the user first sent an open letter to CEO Johnny Lyu on Reddit to vent their dissatisfaction. According to the user’s statement, the exchange has withheld cryptocurrency worth approximately $50,000 on the exchange.
The user explained that KuCoin has Announce They will support the new BCH fork eCash (XEC) and guide them and many others to invest in assets on exchanges. The problem arises when the exchange runs out of liquidity in the cryptocurrency. KuCoin users realize that they cannot sell the assets they hold without major losses (sold at the price of cents against the U.S. dollar).
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However, when they discovered that they could not transfer the coins out, a very sinister problem appeared. Since then, the user has claimed that they have been detained by the exchange worth approximately $50,000 in cryptocurrency for more than six months, but are still not allowed to move their coins.
An open letter to the CEO of Kucoin
Reddit user with username u / BCHcain About four days ago, they issued an open letter to CEO Johnny Lyu, which first attracted attention to the issue. In the open letter, they included screenshots of communications with support staff at least six months ago. The user explained that KuCoin has been giving them a solution to the problem, but there is no real sign of the problem, and there is a “receipt” to support this.
CEO Johnny Lyu replied to this open letter about three days after it was published, giving a relaxed response to a user who was clearly in trouble.
“Thank you for bringing it up. The upgrade is in progress. Since it is not just a simple name change, we also need some time to complete it. Thank you for your patience and understanding,” Lyu wrote.
In response, the Reddit user called the CEO and pointed out that the response proved everything the user claimed in the post; the exchange did not seem to be interested in solving their problem.
Appeal to the community
Four days after the open letter was published, u/BCHcain once again Publish to Reddit. This time I called on the community to help amplify the problem and pointed out that if this could happen to them, then it could happen to anyone as well. This follow-up article has attracted more attention than the open letter.
This issue has raised concerns about the control of user funds by centralized exchanges. To some extent, these centralized transactions control user funds in the same way as banks, and crypto enthusiasts are eagerly trying to eliminate this.
Another user who claimed to call a cryptocurrency exchange on the same platform KuCoin uses Cloudfare to deny access to the platform during the bull market To force users to close positions, and then profit from these closed positions.
KuCoin has not yet responded to the second article. However, it continues to spark conversations around KuCoin and CEX in general issues. As of this writing, the post has received 5.3K likes and 1.6K comments.
Featured image from CoinDesk, chart from TradingView.com