Ki Young Ju, the founder and CEO of crypto analytics service CryptoQuant, has assessed the Seychelles-based crypto exchange KuCoin as "fine" despite ongoing criminal allegations and growing user concerns regarding its reserves.

In a post on X, Ju mentioned that BTC and ETH withdrawals experienced a notable increase, primarily attributed to retail users, with minimal impact on the overall reserve of the exchange. He affirmed that KuCoin seems to uphold segregation of customer funds and possesses adequate reserves for handling user withdrawals, based on on-chain analysis.

According to Scopescan data, KuCoin's total portfolio balance across various chains amounts to $4.889 billion. Despite recent allegations from the United States Department of Justice against KuCoin founders Chun Gan and Ke Tang for purportedly neglecting to implement an Anti-Money Laundering program and facilitating illicit activities, Ju highlighted KuCoin's distinction from the now-defunct FTX exchange, emphasizing that KuCoin hasn't intermingled customer funds with its own reserves.

Typically, crypto investors tend to withdraw their funds from exchanges upon learning about legal issues or concerns regarding the exchange's reserve status. Following former Binance CEO Changpeng "CZ" Zhao's announcement of Binance's decision to divest all FTX's native FTT token holdings, users withdrew billions of dollars from FTX.

The apprehension surrounding KuCoin's reserves, or those of any major exchange, extends beyond its users, as such concerns can trigger broader market withdrawals. Despite legal proceedings against KuCoin's founders, market sentiment appears relatively unperturbed, as indicated by the Crypto Fear & Greed Index, which currently stands at an extreme greed level with a score of 83.