The allegations regarding KuCoin's reserves reportedly triggered significant concerns and speculation within the crypto community. Specifically, CryptoQuant (a well-known community-based crypto analytics platform) issued a statement about a significant decline in KuCoin's Bitcoin reserves. The platform claims that KuCoin's reserves experienced a staggering decline of up to 77.6% after the exchange enforced KYC.

Moreover, CryptoQuant highlighted the drop in the reserves of the crypto exchange from 18,300 to only 4,100. This crypto analytics company believes that this corresponding decline occurred after KuCoin recently implemented its know-your-customer requirements. CryptoQuant's report claims this resulted in a massive outflow of approximately 14,200, following the aforementioned update. Based on this, CryptoQuant raised allegations regarding KuCoin's financial stability.