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Canadian User Claims $2.8M Frozen on KuCoin, Exchange Says Case Closed

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR:

  • KuCoin froze a Canadian user’s account in July 2025, citing a system anomaly after a large withdrawal.
  • The exchange publicly stated the account was deleted and funds were withdrawn months before the viral post.
  • Adil shared screenshots on X countering KuCoin’s claim that no active case or frozen balance exists.
  • KuCoin has asked the account owner to re-engage through official support channels for further review.

A public dispute has erupted between KuCoin and a Canadian crypto user over nearly $2.8 million CAD in allegedly frozen funds. The account holder, represented publicly by his cousin Adil on X, claims the money has been inaccessible since July 2025. 

KuCoin pushed back on the claims directly via its official X account, stating the case was resolved months ago. The two sides now offer sharply conflicting accounts of the same situation.

KuCoin Froze Account After Large Withdrawal, User Claims

The trouble began on July 16, 2025. According to Adil’s post on X, his cousin made a large withdrawal, which triggered what KuCoin described as a “standard precautionary review.” The account was then frozen.

The user submitted KYC documentation, bank statements, and sources of wealth. KuCoin eventually told him, via email, that a “system anomaly” caused the hold. The exchange indicated each trade would need manual review before funds could be released.

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The process dragged on for months. Adil says the communication became a cycle of delays, with each response pushing the timeline further. He described the experience as mentally draining for his cousin.

When the user turned to social media for help, KuCoin moderators publicly denied the issue existed. 

Adil also claims the exchange threatened action against his cousin for submitting “inaccurate details,” even though private email communication acknowledged a system error on KuCoin’s end.

KuCoin Says Account Was Deleted and Funds Were Withdrawn

KuCoin responded publicly on X with a direct rebuttal. The exchange stated the UID referenced in the case was deleted roughly six months ago. According to KuCoin, the support ticket had been resolved and closed before the deletion occurred.

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KuCoin also said the withdrawal connected to the ticket was completed successfully. The account, it claimed, held no assets when it was deleted.

The exchange cited privacy and security policies, noting its team can only discuss account details with the verified account holder. It invited the actual owner to contact support through the registered email if new information existed.

Adil rejected that response on X. He called it gaslighting and attached screenshots of past communications to support his claims. 

He acknowledged sharing limited information publicly due to privacy concerns but maintained the account holder had been reaching out since July through proper channels.

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Adil confirmed the account owner would continue contacting KuCoin via direct message, email, and other channels. He said he hoped the case could be located and resolved in good faith.

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Crypto World

Bitcoin Traders Bet On Sub-$66K BTC In April Due To Rising Fear

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Bitcoin Traders Bet On Sub-$66K BTC In April Due To Rising Fear

Key takeaways:

  • Bearish sentiment is rising as Bitcoin options professional traders lose confidence that the $66,000 level will hold for long.

  • The exit of David Sacks as the Crypto and AI czar and a lack of a clear US Strategic Bitcoin Reserve plan added to investors’ doubts.

Bitcoin (BTC) fell to $65,530 on Friday, an 8% decline from the $71,300 level seen on Thursday. This move wiped out over $210 million in leveraged bullish Bitcoin futures and left most call (buy) options worthless during the $18.6 billion monthly expiry. Traders now anticipate a 53% chance that Bitcoin will stay below $66,000 by April 24.

April 24 Bitcoin option prices at Deribit. Source: Deribit

On Friday, the April 24 Bitcoin $66,000 put (sell) options traded at 0.0566 BTC or roughly $3,730. With a 53% implied probability of Bitcoin trading below $66,000 by late April, the mood remains decidedly bearish following the increased uncertainty in the US and Israel-Iran war, pushing traders into a risk-averse mode.

US inflation threats and stalling crypto, Bitcoin legislation

Rising oil prices and a potential $200 billion in extra US military spending led investors to demand higher returns on government bonds and dragged the S&P 500 to its lowest levels since September 2025. West Texas Intermediate (WTI) oil surged to $100 on Friday, while 5-year Treasury yields reached 4.07%, up from 3.72% three weeks prior.

US 5-year Treasury yield (left) vs. S&P 500 (right). Source: TradingView

Inflationary fear and weaker corporate earnings perspectives alone cannot explain Bitcoin’s 20% underperformance against the S&P 500 in 2026. Other factors are likely at play, including investors’ discomfort over the lack of progress on the US Bitcoin Strategic Reserve.

David Sacks has stepped down from his role as the Trump administration’s crypto and AI czar. While Sacks remains an advisor on the President’s Council on Science & Technology, his departure follows earlier comments that inflated Bitcoin investors’ expectations. Sacks had previously hinted that the US could acquire more Bitcoin through budget-neutral methods without raising taxes.

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Related: US lawmakers publish crypto tax proposal without Bitcoin tax exemption

Bitcoin 30-day options delta skew (put-call) at Deribit. Source: Laevitas

The Bitcoin options delta skew jumped to 15% on Friday, showing that put options are trading at a significant premium relative to call instruments. In balanced market conditions, this metric usually ranges between -6% and +6%. The current level indicates a lack of conviction among whales that the $66,000 level will hold. Fear has largely dominated the Bitcoin options market since mid-January.

Bitcoin options expiry favored neutral-to-bearish strategies

Friday’s monthly options expiry at $68,610 proved unfavorable for neutral-to-bullish strategies, as 97% of call options became void. Bears gained the upper hand as put options at $69,000 or higher surpassed $2 billion in open interest. Critically, part of Friday’s downward move reflects a growing unwillingness among traders to maintain Bitcoin exposure over the weekend.

Crypto markets cut risk on Friday due to uncertainty. Source: X/WhalePanda

X social platform user WhalePanda, suggested that the crash in risk markets anticipates President Trump making “another dumb escalating move” after US markets close. Consequently, the current fear seen in the options market could reverse if no major geopolitical events occur before Monday.

During bearish cycles, traders often rush for the exits at the mere sight of any event that could be deemed negative. Investors should not take Bitcoin’s implied odds at face value, as these metrics are heavily impacted by recent news and headlines. However, expectations could shift more favorably if Iran effectively releases a counter-offer to the US peace proposal.