ZachXBT claims KuCoin ignores victims and law enforcement. See what the on-chain sleuth said about KuCoin’s compliance failures.
On-chain investigator ZachXBT has publicly accused KuCoin of failing crypto theft victims. His claims surfaced in a reply on X to a user who lost life savings to hackers.
The victim, posting under the handle WAWA, said German cybercrime authorities got no cooperation from KuCoin. ZachXBT’s response was blunt and direct.
He said the exchange allows illicit activity as long as it generates fees.
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ZachXBT’s Accusations Against KuCoin Compliance
ZachXBT did not stop at one comment. He shared a previous post questioning KuCoin directly over suspicious laundering activity.
He claimed a threat actor laundered over $9.5 million through more than 150 KuCoin deposit addresses. This allegedly happened through a fake Ledger app scheme.
Days before that, he said another actor moved $3.5 million from the Bitcoin Depot incident using 25 KuCoin deposit addresses. ZachXBT also called out KuCoin for enabling instant exchanges and a centralized mixer called AudiA6.
He said illicit actors operated freely through these channels.
Hi Kucoin does not assist victims or law enforcement I have reported about these issues in the past.
The team is complicit and allows illicit activity to flow as long as it generates fees.
Unfortunately there’s not much I can do to get them to respond to German LE besides… https://t.co/WEdbujUnKg pic.twitter.com/2qywnMqR4Q
— ZachXBT (@zachxbt) May 22, 2026
The $330 Million BTC Theft Allegations
ZachXBT had previously raised a separate but serious case in follow-up posts. He pointed to a theft involving 3,520 BTC, valued at roughly $330.7 million.
According to ZachXBT, the theft addresses were flagged in standard compliance tools. He said eight-figure sums still reached KuCoin despite those flags.
This case was referenced in connection with a theft dated April 28, 2025. ZachXBT used this example to challenge a public statement by KuCoin CEO BC Wong.
KuCoin CEO BC Wong’s Previous Statement on Compliance
BC Wong had posted on X about the importance of compliance. He stated that trust cannot be built without it. He also referenced BCG estimates on the growth of tokenized real-world assets.
ZachXBT responded by pointing to the alleged compliance failures.
Wong had later replied saying KuCoin takes law enforcement requests seriously. He said the team would review the concerns raised. As of the discussion on July 8, 2025, no detailed public response from KuCoin had addressed the specific laundering claims ZachXBT outlined.
