A recent massive transfer of Shiba Inu (SHIB) tokens to the KuCoin cryptocurrency exchange sparked curiosity amidst ongoing legal troubles for the platform. This comes as many users are withdrawing their holdings in response to the situation.
Mysterious Shiba Inu (SHIB) Deposit to KuCoin
Whale Alert, a prominent cryptocurrency tracker, reported a transfer of a staggering 1.4 trillion SHIB tokens (valued at approximately $43.5 million at the time of the transaction) to a KuCoin address. This transaction clearly pales into the significant outflows of SHIB witnessed on the exchange in the past week.
KuCoin has been embroiled in a legal battle with the US Department of Justice (DoJ) facing charges of violating the Bank Secrecy Act. The DoJ alleges that KuCoin failed to maintain a proper anti-money laundering program, potentially facilitating illegal financial activities. Additionally, the exchange is accused of receiving funds from the sanctioned crypto mixer Tornado Cash without reporting suspicious transactions.
Prior SHIB Outflows from KuCoin
Earlier on, Times Tabloid reported a much larger transfer of 2 trillion SHIB, which exited KuCoin in the wake of the DoJ charges. This mass exodus by users reflects a lack of confidence in the exchange due to legal uncertainties. Despite KuCoin receiving the aforementioned large transactions, significant outflows totaling roughly $500 million were documented.
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Current State of Shiba Inu (SHIB)
According to data from Coinmarketcap, the events impacted the price of SHIB. After the event, the price of the meme coin dropped by about 4% over 24 hours. This is in contrast to its performance in 7 days, where it experienced a 15.95% increase in its price. At the time of writing, SHIB holds the 12th position with about $17 billion market capitalization.
The substantial SHIB deposit to KuCoin amidst its legal challenges raises questions about the motivations behind the transfer. Whether it signifies a show of confidence or simply a temporary holding point remains unclear. The ongoing legal case against KuCoin and the broader market sentiment will likely continue to influence SHIB’s price and user behavior on the exchange.
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