The on-chain investigator ZachXBT publicly accused KuCoin of ignoring crypto theft victims and failing to cooperate with law enforcement. The accusations emerged from an X thread in response to a user identified as WAWA, who claimed to have lost his savings to hackers and noted that German cybercrime authorities received no cooperation from the exchange. ZachXBT was direct: he argued that the platform allows illicit activity as long as that activity generates fees.
The investigator also shared posts in which he called out KuCoin over specific cases. According to his findings, a criminal laundered over $9.5 million through more than 150 deposit addresses on the exchange via a fake Ledger app scheme. In another case, he noted that $3.5 million linked to the Bitcoin Depot incident entered the exchange through 25 separate addresses. ZachXBT also targeted the instant swaps enabled by the platform and a centralized mixer called AudiA6.
Hi Kucoin does not assist victims or law enforcement I have reported about these issues in the past.
The team is complicit and allows illicit activity to flow as long as it generates fees.
Unfortunately there’s not much I can do to get them to respond to German LE besides… https://t.co/WEdbujUnKg pic.twitter.com/2qywnMqR4Q
— ZachXBT (@zachxbt) May 22, 2026
KuCoin CEO BC Wong had spoken days earlier about the importance of compliance and institutional trust. ZachXBT responded by citing the case of 3,520 BTC—valued at approximately $330.7 million—allegedly stolen on April 28, 2025, whose addresses would have been flagged in standard compliance tools without that preventing the funds from reaching the exchange. Wong briefly responded that KuCoin attends to law enforcement requests.
Source:Â https://x.com/zachxbt/status/2057677038396559502
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