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Crypto exchange KuCoin has verified that the wallet address purportedly linked to the creation of numerous meme coin scams is associated with one of its users. Nonetheless, the exchange will refrain from freezing the user’s assets until it receives an official notification from law enforcement.
On April 26, a Twitter user highlighted a wallet address that has been responsible for launching 2-5 meme coins each day over the past two years. Another community member noted that these wallet addresses were “owned and controlled” by KuCoin. Currently, blockchain explorer Etherscan has flagged the mentioned address as a fraudulent phishing wallet.
.@CoinGurruu the wallet that you assert has initiated 2-5 memecoin scams daily for the last two years is owned and controlled by @kucoincom. @etherscan has already labeled this address as “Fake_Phishing179336”.
Comments @lyu_johnny? https://t.co/8sy07KujUa pic.twitter.com/gziza5mVNW— James Edwards (@librehash) April 27, 2023
In a statement provided to Cointelegraph, the crypto exchange acknowledged that the wallet address is linked to one of its users. According to KuCoin’s Johnny Lyu, while the address is indeed associated with a platform user, they will not take action to freeze the account until they receive a notification from the appropriate authorities. Lyu elaborated that:
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“When the reporting party has submitted relevant legal documents, procedures, or reporting records, we will assist and collaborate with law enforcement agencies to implement temporary risk control measures in accordance with complaints and reports, user agreements, and Seychelles laws.”
Furthermore, the exchange informed Cointelegraph that if community members observe any suspicious activities, they should report them to the police and provide the necessary materials to their team. Lyu mentioned that they would be willing to cooperate upon receiving the required documentation.
Related: KuCoin Wallet separates from KuCoin exchange, rebrands as Halo Wallet
In the past week, the KuCoin exchange has encountered several challenges. On April 24, the platform’s official Twitter account was compromised and disseminated false information, leading to some followers losing their assets. After discovering the breach, the exchange collaborated with Twitter to recover the social media account and assured that it would compensate the victims affected by the hack.
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