KuCoin is facing new criticism over how it handles hack cases after on-chain investigator ZachXBT accused the exchange of dragging its feet on victims’ reports and police requests. He says KuCoin ignored repeated appeals from users and law enforcement while hacked funds were moved through more than 150 of its deposit addresses.
ZachXBT recently detailed a $9.5 million theft linked to a fake Ledger Live app on Apple’s App Store. He says the scam drained over 50 victims across Bitcoin, EVM, Tron, Solana, and Ripple, with three people losing seven-figure sums each.
According to his investigation, the attacker funneled stolen funds through “more than 150 KuCoin deposit addresses” tied to a mixer service known as AudiA6. One Reddit user claimed that someone hacked them for $300,000 and said KuCoin “ignored law enforcement requests for full data disclosure” for months.
Allegations of Ignored Police Appeals and Victims
ZachXBT’s central argument is that KuCoin had the information it needed and chose not to act. Exchanges routinely freeze suspicious funds when alerted in time, but here the money kept moving while victims filed reports and police tried to escalate the case.
The latest accusations surfaced after a victim publicly tagged ZachXBT on X, offering to pay him out of pocket to identify the team that drained his 15-year life savings through a Trust Wallet breach. That victim also wrote that KuCoin requested sealed police documents and then went silent, ignoring repeated follow-ups for months.
KuCoin has not directly answered all of ZachXBT’s latest claims in public posts, but the exchange has tried to present itself as security-conscious. After hackers took over its Twitter account in 2023 and users lost about 22,628 USDT to fake giveaways, KuCoin said it would “fully compensate for all verified asset losses caused by social media leaks and fake campaigns.”
More recently, KuCoin published an article titled “Crypto doesn’t have a hacking problem. It has a recovery problem,” arguing that investigators can often find stolen money, but legal and procedural delays block quick freezes. The post describes a pattern where “investigators find the money, exchanges freeze it, then lawyers show up,” and it suggests that platforms and authorities need to coordinate better.
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