KuCoin Market Share Slashes in Half Following DOJ, CFTC Probe

KuCoin, once a leading crypto exchange, sees its market share halve as users seek refuge in rival platforms.

KuCoin surrounded by hot lava.
Created by Kornelija Poderskytė from DailyCoin
  • US regulators recently filed several complaints against KuCoin. 
  • Following the charges, users have been panicking and withdrawing their assets. 
  • Still, despite the fallout, the exchange remains resilient. 

KuCoin recently found itself tangled in a web of accusations cast by the US DOJ and the CFTC. The regulators alleged the crypto exchange facilitated numerous violations, from money laundering to illegal operations. 

In the aftermath of the regulatory storm, KuCoin bore the brunt of increasing outflows and waning dominance in the market, deeply hurting its prospects. However, despite the chaos, the exchange stands tall.

KuCoin’s Dominance Wanes

In the past week, the CFTC and the US DOJ unleashed a barrage of complaints against KuCoin and its founders, alleging violations ranging from offering unregistered products to illegally facilitating the flow of an estimated $9 billion in illicit funds. 


In the wake of the regulators’ pile of charges, users panicked, fearing a repeat of an FTX-like situation from happening, and hastily withdrew their funds. KuCoin, once a leading crypto exchange, saw its market share plummet, with daily volumes nosediving by a staggering 75% from $2 billion to just $520 million. 

To put things into perspective, memecoins like DOGE boast a daily trading volume of $3 billion. 

Adding insult to injury, market analytics revealed that the crypto exchange’s market share had more than halved as users sought refuge in what they perceived as safer exchanges and self-custodial wallets, including Coinbase, Binance, and OKX.


The exodus of funds and dwindling market share painted a grim picture for KuCoin’s immediate future. However, despite the panic, the exchange has been holding up well. 

KuCoin Remains Resilient

KuCoin has managed to weather the storm quite well despite facing a surge in user withdrawals. Although users have reported experiencing delays, the exchange continues to confidently facilitate token withdrawals. Interestingly, in response to the congestion, KuCoin even announced a $9 million airdrop initiative to offer some reprieve to users affected by the slow throughput.

On March 26 alone, the day of the complaint, KuCoin experienced an outflow of over $6000 million, mainly of ether and USDT. However, it’s worth noting that these flows only account for on-chain transactions between KuCoin and other exchanges or wallets, excluding those within KuCoin’s internal network.

In its latest asset reserve report dated March 31, KuCoin disclosed holdings of 16,240 bitcoins valued at $1.6 billion, 144,405 ether worth $470 million, $1.2 billion in USDT, and $59 million in USDC. 

On the Flipside

  • The DOJ asserts that KuCoin’s founders are “at large.”
  • In December 2023, KuCoin agreed to settle charges from New York Attorney General Letitia James’ office for $22 million for allegedly operating an unregistered exchange. 
  • A CFTC commissioner criticized the regulator for overstepping its boundaries in the KuCoin case. 

Why This Matters

KuCoin stands as one of the largest crypto exchanges in the world. The recent criminal charges it faces have undoubtedly cast a shadow on its reputation, evident in the increasing outflows. However, despite the prevailing fear, the exchange remains composed as it easily manages user withdrawals.

Read why DEXs on the Base network have been booming:
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When will FTX start repaying its users?
FTX Bankruptcy Estate Aims to Make Claimants Whole by 2024 End

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.