- Hack victim offered ZachXBT $100K to trace stolen life savings sent to KuCoin from Trust Wallet.
- ZachXBT accused KuCoin of failing to assist hack victims and law enforcement.
- Over $9.5 million from a fake Ledger app was laundered through 150 plus KuCoin deposit addresses.
Blockchain investigator ZachXBT accused crypto exchange KuCoin of failing to assist victims and law enforcement after a user claimed the platform refused to cooperate with German cybercrime authorities in tracing stolen funds tied to a Trust Wallet hack.
The victim, an X user operating under the handle WartelWawa, said funds representing 15 years of savings were transferred to KuCoin following the theft. He also offered ZachXBT $100,000 to help identify those behind the attack.
A Pattern ZachXBT Says He Has Documented
ZachXBT did not stop at the individual case. He pointed to a series of prior incidents he said demonstrate a consistent pattern at the exchange.
In one documented case, a threat actor laundered more than $9.5 million tied to a fake Ledger application through more than 150 KuCoin deposit addresses over the course of a single week. Days earlier, another actor moved more than $3.5 million from the Bitcoin Depot incident through more than 25 KuCoin deposit addresses.
ZachXBT also accused KuCoin of enabling instant exchanges that abuse KYC processes and allowing entities such as AudiA6, which he described as a centralized mixer for illicit actors, to operate freely on the platform.
In a separate documented example, ZachXBT noted that well into eight figures was transferred to KuCoin from a theft incident, even with the relevant addresses flagged across every major compliance tool.
“KuCoin deserves to have regulators come after its business once again,” he wrote.
KuCoin’s Response
KuCoin CEO BC Wong responded to ZachXBT’s earlier posts acknowledging the concerns. “We take law enforcement requests seriously and have processes in place to handle them,” Wong wrote. “I know there is always room to improve and I will make sure the team reviews what you flagged.”
Wong also offered to follow up directly via direct message to investigate the specific cases raised.
What ZachXBT Said He Can and Cannot Do
ZachXBT told the hack victim directly that his options are limited. He cannot compel KuCoin to respond to German law enforcement. What he can do is bring public attention to the problem, which his post has done by naming the exchange directly and providing documented transaction evidence.
KuCoin has not issued a formal public statement addressing the specific laundering figures cited by ZachXBT at the time of writing.
Related: ZachXBT Accuses Circle and Jeremy Allaire of Failing to Freeze USDC During Exploits
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
