KuCoin faces scrutiny over $250K theft, KYC abuse

KuCoin is under scrutiny after allegations of $250,000 in stolen crypto laundered via its accounts using purchased KYC. Claims include legal threats, but KuCoin has not responded and no official confirmation exists.

KuCoin is facing renewed scrutiny after blockchain investigator ZachXBT alleged that $250,000 in stolen cryptocurrency, linked to the Atomic Stealer malware on August 18, 2025, was laundered through KuCoin deposit addresses. The accounts involved reportedly used purchased or mule KYC verification, meaning third-party identities were employed to bypass security checks. ZachXBT shared wallet and deposit addresses he claims are tied to KuCoin, along with what appears to be a message from KuCoin's support team warning that false claims could result in legal action. The situation escalated when community member DNBWIZARD posted related screenshots on X, accusing KuCoin of threatening legal action against victims. KuCoin has not publicly responded or confirmed the authenticity of the messages. The allegations have not been verified by a court or official investigation, raising ongoing concerns about KuCoin's compliance practices and cooperation with law enforcement in fraud cases.