KCS Drops 18% as Kucoin Faces Regulatory Issues

KCS Drops 18% as Kucoin Faces Regulatory Issues

KCS Drops 18% as Kucoin Faces Regulatory Issues

Kucoin token, KCS saw a sharp decline as customers liquidated holdings, dropping 2.83% in 24 hours and 18% over the week.

As a result of the United States Department of Justice filing charges against the cryptocurrency exchange Kucoin and two of its founders, the cryptocurrency exchange was among the most contentious topics of discussion this week.

As customers liquidated their KCS holdings, the value of the cryptocurrency experienced a steep decline. Despite the community’s rallying support, KCS has experienced a 2.83 percent drop over the past 24 hours.

The regulatory drama has affected the market, causing the utility token for Kucoin to decline by more than 18% over this week. The sentiment of traders deteriorated, which resulted in a decrease of 52.92% in trading volumes.

KCS Drops 18% as Kucoin Faces Regulatory Issues
KCS Drops 18% as Kucoin Faces Regulatory Issues

KCS Take on Weekly Fires

At the time of writing, the price of KCS stock stood at $11.88, with a daily trading volume of $4.1 million. This slump has wiped away a portion of the monthly gains spurred by the bull cycle in Bitcoin.

Having demonstrated significant indicators of upward momentum, Kucoin’s monthly rise has reached a current 5.94%. As a result of the current upturn in the market, cryptocurrency assets reached new heights, with Bitcoin (BTC) surpassing $70,000 and the number of decentralized financing (DeFi) systems increasing.

The market capitalization of Memecoin skyrocketed by more than 15% before experiencing a little drop. The greens did not include Memecoin in their portfolio.

On March 26, the Department of Justice (DOJ) initiated legal proceedings against the exchange and two of its founders, alleging that they committed unlicensed money transmission offenses and violated the Bank Secrecy Act.

for conspiring to operate an unlicensed money transmitting business and conspiring to violate the Bank Secrecy Act by willfully failing to maintain an adequate anti-money laundering (“AML”) program designed to prevent KuCoin from being used for money laundering and terrorist financing, failing to maintain reasonable procedures for verifying the identity of customers, and failing to file any suspicious activity reports.

On March 27, the Kucoin community announced a $10 million airdrop. Bitcoin and KCS, the native token of Kucoin, will share the airdrop.

Johnny Liu, the CEO of the platform, announced the airdrop and expressed gratitude to the community in light of recent events. Following the collapse of FTX, law enforcement agencies worldwide have increased their efforts to investigate cryptocurrency companies to safeguard investors.

Recently, the ongoing dispute between the Securities and Exchange Commission and Coinbase was one of the regulatory highlights in the market every week.

Users of digital assets persist in voicing their discontentment with the regulatory measures implemented by US authorities in the market.

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