A cryptocurrency user has claimed that approximately $2.8 million CAD in funds have been frozen on the KuCoin platform for nearly eight months, following what the exchange reportedly described as a “standard precautionary review.”
According to the account (Adil) shared publicly, the user had been active on the platform for more than five years before the issue began.
Account Frozen After Large Withdrawal
The freeze reportedly occurred on July 16, 2025, shortly after the user attempted a larger withdrawal from the exchange. The withdrawal triggered what KuCoin described as a standard security review, which resulted in the account being locked.
Following the freeze, the user submitted multiple verification documents requested by the exchange. These reportedly included:
- Know Your Customer (KYC) verification
- Proof of source of wealth
- Bank statements
After reviewing the documents, KuCoin allegedly informed the user that a “system anomaly” had been identified on the account. According to the statement shared publicly, the exchange indicated that each trade on the account would need to be manually reviewed before the funds could be released.
Social Media Appeal and Response
During the review period, the user made a social media post requesting assistance in resolving the situation. The post claimed that moderators associated with KuCoin publicly denied the issue, while also warning that action could be taken against the user for “repeatedly submitting inaccurate details.”
However, the user maintains that the details shared publicly were accurate and that direct email communication with the exchange acknowledged the presence of a system error.
Funds Remain Locked After Eight Months
As of the time of the report, the funds valued at approximately $2.8 million CAD have reportedly remained frozen for close to eight months.
The user and their family have stated they are seeking direct contact with senior representatives at KuCoin in hopes of resolving the matter and having the funds released. The public appeal also tagged Johnny Lyu, the founder and CEO of KuCoin, requesting assistance in addressing the situation.
Ongoing Dispute: The case highlights ongoing disputes that can arise between crypto exchanges and users during security reviews, compliance checks, or technical investigations. At the time of publication, there has been no public confirmation from KuCoin regarding the specific case or the status of the alleged frozen funds.
KuCoin Responds to the Allegation
Following the public appeal, KuCoin responded on social media stating that it had noted the details shared regarding the account. The exchange asked the user to contact them via direct message and provide the official UID so the case can be reviewed further. As of 2025, KuCoin lists 361 cryptocurrencies on its platform and holds an estimated 4.66% share of the global crypto exchange market, according to industry data.
