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Author: Derek Andersen, CoinTelegraph; Compilation: Baishui, Bitchain Vision
According to a letter posted on the exchange blog on March 27,Cryptocurrency exchange KuCoin will airdrop $10 million worth of Bitcoin and its native KuCoin (KCS) tokens.The news was released the day after the U.S. Department of Justice announced the news.allegations against the exchange and its two founders.
Lyu did not mention federal charges, although he mentioned them in the first sentence of the letter:
“I would like to express my gratitude to all KuCoin users for your support, trust and company over the past few days.”
Comparing the airdrop to the exchange’s compensation for investors who lost funds in Confido rug pull, Lyu continued:
“Recently, from March 26 to 27, some users experienced cash withdrawal waiting time exceeds expectations. […]Showing deep gratitude for your support and patience, KuCoin will launch a special KCS and BTC airdrop event totaling $10 million.”
Lyu wrote that the airdrop rules will be released within three days.The recent delay in withdrawals could be due to high trading volumes caused by cautious clients abandoning exchanges.therefore,Airdrop rewards users who remain loyal to the exchange during crisis times.
The timing of this airdrop is worth noting, as KuCoin was faced with a series of legal lawsuits a day ago.The Justice Department has prosecuted the two founders for violating the Bank Secrecy Act for lack of anti-money laundering programs and operating unlicensed remittances.
Meanwhile, the Commodity Futures Trading Commission (CFTC) filed a civil lawsuit against the exchange, accusing the exchange of violating the Commodity Trading Act and CFTC provisions.
Source: Wu Blockchain
After the charges, KuCoin assured users that their assets are safe,KCS fell 12% in 24 hours.
Airdrops are risky, and the most important of all are possible regulatory actions.The SEC wrote in its document “Analytical Framework for Digital Assets “Investment Contracts”:
“The lack of monetary considerations for digital assets, such as those allocated through so-called ‘airdrops’, does not mean that the monetary investment in [Hoi Test] is unsatisfactory; therefore,Airdrops may constitute a sales or distribution issue for securities.”
The DeFi Education Fund teamed up with a small Texas apparel company to file a lawsuit seeking a declarative judgment against the SEC to prevent the agency from suing the company for possessing airdrops.
