The crypto exchange KuCoin has denied claims that it lost more than 77% of its Bitcoin (BTC) reserves since mid-2023.
In a public statement, the company described circulating figures as inaccurate and misleading, stressing its ongoing commitment to transparency, user security, and responsible reporting in the digital asset space.
The rebuttal followed a report by blockchain analysis platform Onchain School, which alleged that KuCoin’s BTC holdings fell from 18,300 BTC in June 2023 to about 4,100 BTC in April 2025 — a decline of nearly 14,200 BTC.
That report cited CryptoQuant data and attributed the alleged outflows to KuCoin’s introduction of mandatory Know Your Customer (KYC) rules last year.
KYC policy blamed for alleged Bitcoin outflows
The central claim in Onchain School’s analysis links KuCoin’s alleged decline in BTC reserves to its KYC policy introduced in August 2023.
The new requirement obliged all users to complete identity verification — a measure aimed at strengthening security and curbing illicit activities such as money laundering and terrorist financing.
The analytics firm speculated that stricter compliance prompted mass withdrawals by users concerned about privacy.
It also noted that the purported reserve decline at KuCoin appeared steeper than similar trends observed at other centralized exchanges, suggesting a stronger user reaction in this case.
KuCoin rejected those conclusions, saying the numbers do not accurately reflect its current reserves and warning that such misinformation could damage confidence across the crypto industry.
KuCoin releases Proof of Reserves to counter claims
To counter the narrative, KuCoin published its latest Proof of Reserves report — its 30th — providing a detailed snapshot of its current digital asset holdings.
The report shows KuCoin’s Bitcoin reserve ratio at 106%, covering approximately 9,751 BTC in user balances and 10,306 BTC in exchange-controlled wallets.
These figures indicate the exchange holds more BTC than it owes to customers, aiming to reassure users about the platform’s solvency.
Beyond Bitcoin, the report also revealed over-collateralization for several key assets:
Ethereum (ETH): 116% reserve ratio
Tether (USDT): 114% reserve ratio
USD Coin (USDC): 109% minimum reserve ratio
KuCoin said, “We are concerned about the spread of false or misleading information by some platforms. Irresponsible reporting misleads users and undermines confidence in the crypto ecosystem.”