Cryptoquant data indicates a sharp reduction in KuCoin reserves
According to information shared by Onchain School, an analyst from the on-chain data platform Cryptoquant, after announcing the mandatory KYC verification process for platform users on June 28, 2023, KuCoin's Bitcoin (BTC) reserves saw a significant decline.
On-chain data shows that the platform's Bitcoin reserves dropped sharply from 18,300 coins to only 4,100 coins, with a net outflow of 14,200 coins, a decrease of 77.6%.
Onchain School emphasizes that although the long-term trend of Bitcoin reserves in centralized exchanges (CEX) across the industry is declining, KuCoin's situation is particularly extreme, with the timing and scale of the capital outflows highly correlated with the implementation of KYC measures.
KuCoin forwarded reserve proof response
However, regarding this data, KuCoin officially cited the platform's asset reserve audit data as of April 30, 2025, stating that the reserve ratios for Bitcoin, Ethereum, USDT, and USDC are 106%, 116%, 114%, and 109%, respectively.
Among them, the user assets of Bitcoin are 9,751 coins, wallet assets are 10,306 coins, which shows a significant discrepancy with the data from Cryptoquant. The user assets of ETH are 145,807 coins, wallet assets are 168,779 coins; USDT user assets are approximately $1.179 billion, wallet assets are approximately $1.338 billion.
The reserve proof was initially audited by a third-party company, 'International Accounting Firm Mazars', but there are reports that the company has suspended services for cryptocurrency entities, so it remains unknown whether KuCoin has changed its auditing company.
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