KuCoin is facing new scrutiny after blockchain investigator ZachXBT claimed that the exchange sent legal warnings to a victim whose stolen funds were allegedly routed through accounts linked to KuCoin.
summary
- A cryptocurrency investigator claims that KuCoin sent legal warnings after routing stolen funds through the accounts.
- The case centers around the theft of $250,000 worth of Atomic and five alleged KuCoin deposit addresses.
- The dispute adds pressure as KuCoin remains under scrutiny for past anti-money laundering and compliance failures.
The case involves the theft of $250,000 worth of offspring as of August 18, 2025, according to ZachXBT’s Telegram mail.
ZachXBT listed one theft address and five alleged KuCoin deposit addresses. He claimed the accounts included “purchased KYC,” a term used for accounts that were verified with someone else’s identity. These claims have not been confirmed by court filings or KuCoin’s official statement.
The screenshot shared with the post appears to show a message signed by KuCoin’s customer service and support team. It says KuCoin respects the right to raise concerns through legal and regulatory channels, but warns that false or unlawful statements may lead to legal claims.
The letter also says: “All rights expressly reserved.” The post drew more attention after DNBWIZARD shared the exchange on X and He said“Funny @kucoincom threatens to sue me.”
KuCoin’s claims reflect previous compliance concerns
The dispute comes after years of pressure on KuCoin’s compliance record. The US Department of Justice said in January 2025 KuCoin pleaded guilty for operating an unlicensed money transfer company and agreed to pay fines of more than $297 million. The Justice Department said KuCoin failed to maintain effective anti-money laundering and know-your-customer programs and allowed suspicious activities on its platform.
The Department of Justice had charged KuCoin and two of its founders in March 2024, alleging that the exchange failed to maintain proper anti-money laundering controls. Prosecutors He said KuCoin received over $5 billion and sent over $4 billion in suspicious and criminal funds between 2017 and 2024.
The related stolen money issues remain a focus
like I mentioned By crypto.news The fake Ledger Live app stole at least $9.5 million from more than 50 victims earlier this year. That report said the stolen funds were routed through more than 150 KuCoin deposit addresses and to a central mixing service.
The same report said that blockchain investigator ZachXBT traced the stolen funds through transactions at KuCoin deposit addresses linked to AudiA6. It also noted that recovery will likely require enforcement action and cooperation from exchanges.
As previously reported by crypto.news, KuCoin Believer MiCA licensed in Austria through its European subsidiary in late 2025. The approval allowed the exchange to offer regulated services across the European Economic Area under EU passporting rules.
However, the Austrian regulator later banned KuCoin’s European arm from new business and clients, citing recruitment issues. This restriction came after KuCoin’s previous effort to present itself as a regulated European platform.
