Amidst legal challenges, KuCoin, a crypto exchange, unveils a $10 million Bitcoin (BTC) and KuCoin (KCS) token airdrop, as CEO Johnny Lyu expresses gratitude to users for support.
KuCoin CEO Responds to US DOJ Charges, Announces $10 Million Airdrop Plan
Johnny Lyu, CEO of KuCoin, revealed the news in a blog post on March 27, shortly after the US Justice Department filed charges against the exchange and its founders.
Lyu appreciates users for their support amidst longer withdrawal times on March 26-27, promising a $10 million KCS and BTC airdrop as a special event.
US authorities accuse KuCoin and founders of Bank Secrecy Act violations and running an unlicensed money-transmitting business. The Commodity Futures Trading Commission (CFTC) also alleges breaking of the Commodity Exchange Act and CFTC rules.
KuCoin Responds to DOJ, SEC Warns About Airdrop Risks, and Texas Company Sues SEC Over Airdrop Lawsuit
Following the allegations, KuCoin assures users of fund safety; however, the exchange's native token, KCS, declines by 12% in 24 hours.
SEC highlights regulatory risks in airdrops, suggesting they could be considered sales or distribution of securities, despite being free.
A Texas-based apparel company, with the DeFi Education Fund, petitions the court against the SEC, seeking to halt a potential lawsuit over an airdrop.