KuCoin Refutes Claims It Lost 77% of Bitcoin Reserves Since Mid-2023

Crypto exchange KuCoin has refuted claims by blockchain analytics platform Onchain School that it lost over 77% of its Bitcoin (BTC) reserves since mid-2023.

In a public statement, the company described the circulating figures as inaccurate and misleading, emphasizing its ongoing commitment to transparency, user security, and responsible reporting in the digital asset space.

The rebuttal comes in response to a recent report by Onchain School, which alleged that KuCoin’s BTC holdings plunged from 18,300 BTC in June 2023 to approximately 4,100 BTC by April 2025—a sharp decline of nearly 14,200 BTC.

Citing data from CryptoQuant, the report attributed the anomaly to KuCoin’s implementation of mandatory Know Your Customer (KYC) rules last year.

KYC policy blamed for alleged Bitcoin outflows

The central argument in Onchain School’s analysis links KuCoin’s supposed BTC reserve decline to its KYC policy introduced in August 2023.

The new regulation required all users to complete identity verification—a move intended to enhance security and curb criminal activity, including money laundering and terrorism financing.

However, the stricter compliance measures sparked massive user withdrawals due to privacy concerns, ultimately leading to the steeper-than-usual drop in KuCoin’s BTC reserves, the report claimed.

It was also noted that the exchange’s alleged reserve decline outpaced similar trends seen across centralized exchanges, suggesting a more acute user response in this case.

Nevertheless, KuCoin pushed back on these conclusions, saying the figures do not accurately represent the current state of its reserves and warning that such misinformation could damage trust across the broader crypto industry.

KuCoin publishes proof-of-reserves to counter claims

To counter the narrative, KuCoin released its latest Proof of Reserves report—its 30th to date—offering a detailed snapshot of its current digital asset holdings.

According to the report, KuCoin’s Bitcoin reserve ratio stands at 106%, covering approximately 9,751 BTC in user balances and 10,306 BTC in exchange-controlled wallets.

The data indicates that KuCoin holds more BTC than it owes to its customers, reassuring users of the platform’s solvency.

In addition to Bitcoin, the report revealed overcollateralization for other major assets:

• Ethereum (ETH): 116% reserve ratio

• Tether (USDT): 114% reserve ratio

• USD Coin (USDC): 109% reserve ratio

KuCoin stated, “We’re concerned about the spread of false or misleading information by some platforms. Irresponsible reporting misleads users and undermines trust in the crypto ecosystem.”