The rumors emerged just hours after Voyager Digital announced a freeze on customer withdrawals in the midst of the ongoing Three Arrows Capital crisis.
KuCoin is operating normally, according to the CEO
According to the CEO of KuCoin, rumors that the company is on the verge of bankruptcy are false.
In an early Saturday tweet storm, Johnny Lyu addressed speculation that the firm was facing insolvency, confirming that “everything on KuCoin is operating well” and that the exchange had no plans to halt withdrawals.
Lyu also called circulating rumors about Ku Coin’s potential liquidity issues “sheer rumors” and confirmed that the firm has no ties to the Terra ecosystem, Three Arrows Capital, or Babel Finance.
Voyager announced on Friday that it was suspending customer withdrawals, deposits, and trading while “exploring strategic alternatives” for moving forward.
Last month, it was revealed that Three Arrows had defaulted on a loan from Voyager worth $665 million in Bitcoin and 350 million USDC. Three Arrows has yet to repay the loan.
In May, KuCoin raised $150 million in a funding round, valuing the company at $10 billion. Despite the ongoing market slump, the firm is actively hiring, as Lyu stated in his Saturday announcement. Lyu added that “being transparent is always one of [Ku Coin’s] key principles” and closed his post with a positive note: “Don’t FUD, BUIDL.”
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