KuCoin moves huge 250 million XRP due to US charges

As U.S. authorities brought charges against KuCoin, the crypto community witnessed the transfer of 250,000,000 XRP associated with KuCoin.
Well-known cryptocurrency tracker Whale Alert highlighted the transfer in a recent update. According to the disclosure, the 250 million XRP was transferred from an unknown address last night, with the amount at that time being $158,381,167.
Community response
The deal has drawn mixed reactions from community members, especially given the unknown sources involved. Besides, the last time such a huge deal appeared was a few weeks ago.
Some members speculated that institutions might be buying XRP, while others questioned whether the transaction was related to the tokenized gold issued by HSBC.
However, a closer examination of the details of the transaction shows that the entities involved are not particularly unknown. Data from XRP explorer XRPScan suggests that the $250 million XRP transfer originated from well-known cryptocurrency exchange KuCoin, and the sending wallet is associated with the exchange.
Why is KuCoin moving 250M XRP?
Interestingly, after receiving the 250 million XRP, the receiving wallet continued to drain the XRP in batches of hundreds of transactions over the past 12 hours. These funds flowed to other centralized exchanges such as Binance, Coinbase, Bitget, Bybit, MEXC, and Crypto.com.
KuCoin faces U.S. charges
This pattern suggests that KuCoin issued these 250 million XRP to meet the increasing withdrawal requests from users who may have fled the platform. Notably, this development came at a time when the U.S. government filed criminal charges against KuCoin and its two founders, Chun Gan and Ke Tang.
Specifically, U.S. attorneys claim that KuCoin intentionally concealed the fact that a large number of Americans were trading on its platform.
They claim that KuCoin has used its sizeable U.S. customer base to establish itself as a prominent trading platform without complying with U.S. laws to combat criminal activity and illegal financial schemes.
Basically, the allegations sparked panic among KuCoin users, potentially leading to a massive withdrawal of tokens, including XRP, from the platform.
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