KuCoin Confirms Exchange User Behind Daily Memecoin Rug Pulls

• Crypto exchange KuCoin confirmed that the address allegedly responsible for launching thousands of memecoin scams belongs to one of its users.
• KuCoin said they will not freeze the user’s assets without any official notice from law enforcement.
• The exchange told community members to report suspicious behavior to the police and submit materials to their team.

KuCoin Confirms Exchange User Behind Rug Pulls

A community member identified a wallet address that allegedly launched several memecoin rug pulls daily for almost two years, and crypto exchange KuCoin has now confirmed that it belongs to one of its users. However, the exchange will not freeze the user’s assets unless there is an official notice from law enforcement.

Suspicious Address Marked As Fake Phishing Wallet

On April 26th, a Twitter user identified a wallet address that launched two to five memecoins daily for two years and another community member pointed out that the wallet addresses were “owned and controlled” by KuCoin. Blockchain explorer Etherscan has already marked this address as a fake phishing wallet.

Exchange Will Not Freeze Account Without Notice From Law Enforcement

In a statement sent to Cointelegraph, the crypto exchange confirmed that the wallet address belongs to one of its users but they will not take action against it without an official notice from law enforcement. Johnny Lyu explained: “When the reporting party has provided relevant legal documents, procedures, or reporting records, we will assist and cooperate with law enforcement agencies to take temporary risk control measures in accordance with complaints and reports, user agreements and Seychelles laws.”

Community Members Asked To Report Suspicious Behavior

In addition, KuCoin asked community members to report any suspicious behavior to the police and submit related materials so they can cooperate after receiving those documents.

Recent Compromise Of Official Twitter Account

The Kucoin exchange also faced challenges in recent days when its official Twitter account was compromised on April 24th resulting in some of its followers losing their assets. After identifying this breach, they worked with Twitter in order to recover these funds.