In a recent blog post on March 27, KuCoin's CEO, Johnny Lyu, shared news about a $10 million airdrop of Bitcoin and KuCoin's own token, KCS. This announcement comes shortly after the exchange and two founders faced legal charges from the U.S. Justice Department.

Lyu explained that the airdrop serves as a way for the exchange to compensate investors who suffered losses during the Confido incident. Details about the airdrop's guidelines will be disclosed in three days. The surge in activity, likely due to customer skepticism, may have caused delays in withdrawals, prompting the airdrop as a gesture of gratitude to loyal users.

Amidst Legal Challenges

The timing of the airdrop coincides with legal troubles for KuCoin, as the exchange and its founders were recently accused of lacking an Anti-Money Laundering program and operating an unregistered money-transmitting business, violating the Bank Secrecy Act. These charges were brought forth by the Justice Department.

Simultaneously, the CFTC initiated a civil case against KuCoin for alleged violations of CFTC regulations and the Commodity Exchange Act. Following these legal actions and a 12% decline in KCS value within a day, KuCoin swiftly reassured its users about the safety of their investments. Airdrops, while beneficial, also carry regulatory risks, as demonstrated by the ongoing legal scrutiny.