KuCoin: Accused of Laundering $13M in Illicit Flows

KuCoin enabled threat actors to launder $9.5M tied to a fake Ledger app through 150+ deposit addresses last week and another $3.5M from the Bitcoin Depot incident via 25+ addresses, according to on-chain investigator ZachXBT. The exchange ignored repeated reports to German law enforcement while permitting instant exchanges and centralized mixers like AudiA6 to process illicit crypto. KuCoin compliance failures continue to draw regulatory heat as exchanges balance fee revenue against mounting scrutiny over crypto exchange illicit activity and Bitcoin Depot hack tracing.