KuCoin has strongly refuted reports indicating a 77% decline in its Bitcoin reserves since 2023. The controversy arose following a report from data platform Onchain School—citing CryptoQuant—that claimed KuCoin’s BTC holdings fell from 18,300 BTC in June 2023 to 4,100 BTC by April 2025, attributing much of the alleged withdrawal to user reactions following the implementation of mandatory KYC rules in August 2023. Many users purportedly withdrew funds over privacy concerns. The same report suggested that KuCoin’s situation reflected a broader industry trend of declining Bitcoin reserves among centralized exchanges but considered KuCoin’s drop more severe.
KuCoin has disputed these figures, labeling them misleading and emphasizing their commitment to responsible reporting and ecosystem transparency. To counter the claims, KuCoin released its 30th Proof of Reserves, demonstrating a 106% Bitcoin reserve ratio — equating to 9,751 BTC in user funds and 10,306 BTC in exchange-controlled wallets. Additional reserve ratios reported include 116% for ETH, 114% for USDT, and 109% for USDC. KuCoin stressed that misreporting could damage public trust in the crypto ecosystem and highlighted the importance of accuracy in financial reporting.