On July 23, a tweet from Otteroooo's now-deleted Twitter account first spread the rumors. Otteroooo asserted to have access to confidential material suggesting the bankruptcy of the KuCoin cryptocurrency exchange. How did KuCoin address its insolvency FUD rumors on Twitter?
The crypto community has been urged by KuCoin to ignore the FUD circulating about its business. His Twitter account was deactivated by Otteroooo.
The community is debating Otteroooo's sources' reliability.
How did KuCoin address its insolvency FUD rumors on Twitter?
Lyu, however, has disproved these reports and called them absurd. He explained that Otteroooo ignored the facts and created FUD despite the KuCoin team's efforts to explain the issue to him.
Lyu posted the whole conversation he and Otteroooo had, which primarily focused on wLUNA and whether the exchange had LUNA exposure, in the blog post to clarify the exchange position. Lyu asserted that all of the LUNA in KuCoin's wallets belonged to its users and disputed that KuCoin had any exposure to LUNA.
The notion that KuCoin is bankrupt has previously surfaced. There were claims made earlier this month that Terra's demise caused the exchange to suffer considerable losses.
At the time, the CEO refuted the rumors and asserted that the exchange has no exposure to Babel or Three Arrows Capital. Additionally, he made threats to sue anyone who circulated false information about the deal.
Otterooo's legitimacy has been questioned by others besides just Lyu. FatmanTerra, a different member of the crypto community on Twitter, referred to the assertions as "fear-mongering."
"Your thread's entire premise is false. Although they were credited straight as LUNA for trading and balance purposes, much like how USDT on Tron and USDT on Ethereum are merged, KuCoin *did* support and actively accept wLUNA deposits, he tweeted.
Otteroooo's previous accusations have all proved out to be untrue, so this is not new. Nexo, a cryptocurrency lender and exchange, launched an expose on the account that exposed its FUD-spreading strategies.
