Before LUNA&UST crashed, KuCoin provided users with a way to buy and sell Usts. Since KuCoin is connected to the Luna blockchain, users who buy Usts on KuCoin can send them directly to Luna Ecosystem Anchorrprotocol or other Dapps for use.

Whether KuCoin was affected by luna's crash, we can check the data on the link, because the data don't lie. In May 2022, the highest wLUNA holder according to on-chain data is KuCoin, which owns about 27% of the supply of wLUNA, although KuCoin has no wLUNA token online. wLUNA is the ERC-20 standard token introduced by LUNA2.0.

Why would KuCoin, as an exchange, hold so much of a token?

It's understandable that exchanges are now the largest holders of tokens, as a centralized exchange is the custodian of user tokens. However, the problem is that KuCoin does not have a WLUNa-related trading pair online! Therefore, all wLUNA owned by KuCoin cannot be deposits from users.

LUNA had a market value of about $40 billion before the crash, and with KuCoin's holdings, the exchange lost at least more than $12 billion.

Since the user did not save wLUNA to the exchange, where did KuCoin's wLUNA come from? otteroooo has analyzed the source of wLUNA holdings, and there are two possibilities:
One is that KuCoin built up a bank of operating profits (such as transaction fees, overcharging withdrawal fees, etc.) and then made a losing bet on wLUNA.

Second, Kucoin directly uses users' tokens to bet on the market, and the final gamble fails.
A senior executive inside KuCoin has confirmed that KuCoin was indeed betting right before LUNA failed and lost as much as $500 million.

Contributing to the huge asset hole in KuCoin's balance sheet is the fact that Kucoin is UST's No. 1 backer, and that the exchange is moving customer deposits and planning a round of retrenchment after further fundraising.

These Revelations are not fabricated, as we can see from KuCoin's history of financing.

On May 10, KuCoin closed a $150 million funding round at a $10 billion valuation.

On July 21, KuCoin announced that it had received $10 million from Hainer International Group (SIG) for "Ecosystem."

Why raise $10 million in microfinance after raising $150 million? otteroooo said the move instead confirmed the whistleblower's claims that it was likely that KuCoin lacked the funds to meet all the withdrawals and needed the emergency funds.

KuCoin CEO Johnny Lyu later explained the incident in a blog post on the exchange's website. In response to accusations from KuCoin employees, he claimed that the act had no meaning for KuCoin because otteroooo could not prove that the individual was a former employee of the KuCoin exchange. Such images are easy to fake.

But just to remind everyone, do you really want to gamble your assets on a PR statement? The credibility of PR claims is almost nil, and history teaches us that most exchanges claim "everything is fine" before running away.

According to the profile, KuCoin was founded in September 2017, just after the domestic ICO ban. At that time, major exchanges were preparing to "go to sea", and Kubi was initially operating in Chengdu.
Tianyan industrial and commercial data information shows that KuCoin belongs to Chengdu Lemon Cloud Network Technology Co., LTD., legal person for Zhu Dongming. In November 2018, it raised $20 million in Series A funding from IDG Capital, Matrix & Partners China and NEO Global Capital, which was cancelled in January 2021.

It also once exchange appears problem, your money will not be able to recover, and domestic media after the incident also started publishing KuCoin pr news, according to various media otteroooo twitter user account was banned for spreading rumours, but the truth is still exists, the account has not been banned, a move that may be in order to stabilize the domestic users.