KuCoin's Bitcoin reserves allegedly dropped by 77.6% from 18,300 BTC to 4,100 BTC between June 2023 and April 2025, sparking controversy and debate. This significant decline, amounting to a net outflow of 14,200 BTC, has been attributed to KuCoin's introduction of mandatory Know Your Customer (KYC) rules in mid-2023.

*KuCoin's Response:*

- KuCoin disputes these claims, labeling the figures "misleading and inaccurate"

- The exchange emphasizes its commitment to transparency and responsible reporting

- KuCoin shared its 30th Proof of Reserves, showcasing a 106% Bitcoin reserve ratio

*Key Factors:*

- *KYC Policy*: Introduced in August 2023, requiring users to complete identity verification

- *User Withdrawals*: Potentially driven by privacy concerns and preference for self-custody

- *Market Impact*: KuCoin's situation contrasts with Binance's growing dominance in the centralized exchange landscape