On-chain researcher ZachXBT has accused cryptocurrency exchange KuCoin of pressuring a scam victim while allegedly facilitating the laundering of millions of dollars in stolen digital assets.

Key Points

• ZachXBT claims KuCoin sent legal warnings to a user who lost $250,000 to Atomic Stealer malware in August 2025.
• The researcher alleges that stolen funds are frequently laundered through KuCoin accounts utilizing purchased, fake KYC verification credentials.
• ZachXBT reports that over $13 million in stolen funds, including assets from a $9.5 million Ledger Live phishing scheme, passed through KuCoin addresses.
• Allegations suggest the exchange is slow to cooperate with law enforcement and systematically ignores requests regarding active criminal investigations.
• KuCoin has not issued an official response to these claims, and the allegations remain unverified by court documentation.

Why it Matters

These allegations raise significant concerns regarding the security protocols and regulatory compliance standards of major cryptocurrency exchanges. If proven true, the failure to prevent money laundering could lead to increased scrutiny from global financial regulators and potential legal repercussions for the platform.