Share this article
KuCoin Says It Has No Exposure to wLUNA Tokens
The crypto exchange's CEO, Johnny Lyu, calls the rumors "quite disturbing."
Updated May 11, 2023, 5:40 p.m. Published Jul 27, 2022, 2:44 p.m.
Crypto exchange KuCoin has denied having exposure to luna tokens amid chatter the company was facing possible insolvency after the Terra ecosystem's collapse in mid-May.
Rumors of trouble at KuCoin are thanks to “otteroooo,” a crypto-related Twitter account that last week alleged the exchange held large quantities of wrapped luna (wLUNA) in its wallet addresses and suffered losses as LUNA prices fell 99.7%. The once-popular otteroooo account has since shut down.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Otteroooo claimed that KuCoin held wLuna, even though the exchange didn't offer deposit or withdrawal services for those tokens to its users. That, according to otterooo, meant KuCoin took on massive losses as it held a token that greatly lost its value.
In a blog post earlier this week, however, KuCoin CEO Johnny Lyu said that the exchange supported ERC-20 LUNA before and that the service was suspended in May. Lyu explained that the exchange offered wLuna to users during a time period between January 2021 and May, but swapped the tokens after the old luna tokens ceased to exist – thus providing a rationale for its wLuna holdings at the time.
“Most funds in KuCoin wallets do not belong to KuCoin; they belong to our users,” Lyu continued. “Having a LUNC wallet does not necessarily mean KuCoin as a company is holding lots of LUNC tokens, and I'm sure the difference is obvious.”
Lyu further stated that KuCoin’s recent $150 million fundraising round had nothing to do with Luna nor was it about the need for capital to pay off depositors.
Speaking to CoinDesk, Lyu said it was “quite disturbing” to see that a large part of the crypto community took the rumors being circulated on Twitter seriously.
“Builders in the industry do not want to see such an event happen,” Lyu said, adding that the current market situation “incited suspicion and we understand those prone to it.”
As a result, KuCoin launched an “Anti-FUD Fund” on Tuesday as an educational initiative to provide accurate information to community members and crypto users and to take legal action against those who start rumors. (FUD stands for fear, uncertainty and doubt.)
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Hilbert Group buys Enigma Nordic in $32 million deal to boost crypto trading edge
The deal includes performance-based earn-outs contingent on Enigma's strategies generating $40 million in net income.
What to know:
- Hilbert Group has acquired high-frequency trading platform Enigma Nordic in a $32 million deal, gaining access to Enigma's proprietary trading system and market-neutral strategies.
- The deal includes performance-based earn-outs contingent on Enigma's strategies generating $40 million in net income.
- The acquisition will help Hilbert offer systematic crypto products to institutional investors, with plans to integrate Enigma's platform into its hedge fund offerings.
Top Stories
