Cryptocurrency exchange KuCoin surprised the crypto community with the announcement of a free giveaway to its clients of bitcoins and KCS exchange tokens totaling $10 million.
The announcement comes amid legal troubles for the platform, which is facing charges from the US Department of Justice for violating anti-money laundering laws.
Following the indictment, KuCoin saw more than $1 billion in withdrawals from the platform, resulting in a 20% drop in assets under management. The massive outflow of funds was caused by users' fears of possible liquidity problems and the exchange's inability to handle the legal claims.
On the official page of KuCoin in X, there was information about the draw of tokens worth $10 million among the exchange's clients. Details of the draw are promised to be presented within three days.
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KuCoin CEO Johnny Lyu published a letter in which he spoke about the legal problems and charges brought by the US Department of Justice against the exchange and its founders. He stated that users' funds are safe, that the exchange is able to cope with the current difficulties, and that it will conduct a large-scale airdrop to thank its clients.
Explaining recent problems, including delays in withdrawals on March 26 and 27, Lyu stressed: "We have overcome challenges, earned trust, and stayed true to our mission of safeguarding users' assets and complying with regulatory standards."
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The head of the crypto exchange thanked users for their support and trust during a difficult period for the company, but also expressed confidence in the management's ability to overcome the crisis period, as has happened more than once in the seven years of the platform's operation.
Johnny Lyu said that KuCoin reaffirms its goals to grow with the crypto industry and contribute to the expansion and global recognition of the industry.
The platform chief revealed that some users may have experienced delays in withdrawals due to the exchange being faced with a large number of withdrawal requests at the same time. To show its appreciation to its users for their support and patience, KuCoin will hold a $10 million KCS and BTC token giveaway.
To register to participate in the airdrop, you need to
- Go to the promotion page;
- Select the "Register Now" option;
- Link a cryptocurrency wallet.
KuCoin employees will then communicate the rules of the raffle within three days.
The company's management urged people to be wary of scammers who may take advantage of the situation and request confidential client information in the name of the exchange.
KuCoin said: "We have always valued the trust of our clients, and the title 'People's Exchange' is our greatest pride."
Related: Can KuCoin cause an FTX-scale crisis in the crypto industry?
