KuCoin announces $10 million airdrop in Bitcoin and its native token amid legal woes

Outflows from the exchange have amounted over $1 billion within 24 hours.

KuCoin airdrop

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Crypto exchange KuCoin will launch a special $10 million airdrop in Bitcoin and KuCoin tokens for users experiencing withdrawal delays, said Johnny Lyu, CEO of KuCoin, in a recent post on X. This decision came after the exchange was hit by new charges from the US Department of Justice (DOJ) on Tuesday.

Details of the airdrop will be revealed in the next three days. In addition to this special airdrop, KuCoin plans to reward users who stayed with the exchange during this time. This came after a user inquired about the possibility of rewarding those who “didn’t paper-hand” and left KuCoin.

KuCoin has dealt with numerous withdrawals since the recent charges surfaced. According to Nansen’s data, KuCoin’s users have pulled $1 billion (not including Bitcoin) from the exchange over the past 24 hours. Additionally, the total assets on the exchange dropped to $4.8 billion, down 20%.

Some users took to X to complain about withdrawal problems in the last few days.

However, Spot on Chain reports that KuCoin still processes remittances normally. This may take longer due to the increased number of user requests.

The DOJ’s accusations against KuCoin and its founders include operating an unlicensed money transmission business and facilitating $9 billion in illegal transactions since 2017. KuCoin has acknowledged the allegations and is actively seeking legal counsel to address the matter, assuring users that their assets remain secure.

The exchange has also faced legal challenges from the Commodity Futures Trading Commission, which has cited the company for offering unregistered trading services and non-compliance with KYC regulations.

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