KuCoin will airdrop BTC and KCS worth $10 million to users

Author: Derek Andersen, CoinTelegraph; Compiled by: Whitewater, Golden Finance

According to a letter posted by CEO Johnny Lyu on the exchange blog on March 27, Cryptocurrency exchange KuCoin will airdrop $10 million worth of Bitcoin and its native KuCoin (KCS) token. The news comes a day after the U.S. Department of Justice made the announcement. Allegations against the exchange and its two founders.

Lyu did not mention the federal charges, although he mentioned them in the first sentence of his letter:

“I would like to express my gratitude to all KuCoin users for their support in the past Support, trust and companionship for days.”

Comparing the airdrop to exchange compensation for investors who lost funds in the Confido rug pull, Lyu continued:

"Recently, from March 26th to 27th, some users experienced longer-than-expected waiting times for withdrawals. [...] Expressed by With deep gratitude for your support and patience, KuCoin will launch a special airdrop event of KCS and BTC totaling US$10 million.”

Lyu wrote that the airdrop rules will be in Posted within three days. The recent delays in withdrawals may be caused by high trading volumes due to cautious customers abandoning the exchange. Therefore, the airdrop rewards users who remain loyal to the exchange during times of crisis.

The timing of this airdrop is noteworthy, as KuCoin was hit with a series of legal actions a day earlier. The Justice Department indicted the two founders for violating the Bank Secrecy Act, accusing them of lacking an anti-money laundering program and operating an unlicensed money transfer business.

At the same time, the Commodity Futures Trading Commission (CFTC) filed a civil lawsuit against the exchange, accusing the exchange of violating the Commodity Exchange Act and CFTC regulations.

Source: Wu Blockchain

After accusations, KuCoin assures users that their assets are safe,< span style="color: rgb(0, 112, 192);">KCS fell 12% in 24 hours.

Airdrops come with risks, not the least of which is the potential for regulatory action. In its document, "A Framework for Analyzing Digital Asset "Investment Contracts,"" the SEC writes: "The lack of monetary considerations for digital assets, such as those distributed through so-called 'airdrops,' does not mean that [How [European test] currency investment is not satisfactory; therefore, airdrops may constitute a matter of sale or distribution of securities. span>”

The DeFi Education Fund teamed up with a small Texas clothing company to file a lawsuit seeking a declaratory judgment against the SEC to prevent the agency from suing the company for holding airdrops.