ZachXBT, a blockchain investigator, said KuCoin sent a legal warning to a victim whose stolen funds were routed through KuCoin‑linked accounts in a case involving a $250,000 Atomic stealer theft. The theft occurred on August 18, 2025, and involved five alleged KuCoin deposit addresses. ZachXBT said the accounts had purchased mule KYC, meaning they were verified with another person’s identity.

KuCoin has not confirmed the allegation and no court filing or official statement has been released. In March 2024, U.S. prosecutors charged KuCoin and two founders, alleging failure to maintain adequate anti‑money‑laundering and know‑your‑customer controls. In January 2025, KuCoin pleaded guilty to operating an unlicensed money‑transmitting business and agreed to pay more than $297 million in penalties.

The exchange obtained a MiCA licence in Austria in late 2025, which allowed it to offer regulated services across the European Economic Area, but the Austrian regulator later barred its European arm from taking on new customers, citing staffing shortages.

Earlier this year, a counterfeit Ledger Live app stole at least $9.5 million from more than 50 victims, with funds routed through over 150 KuCoin deposit addresses into a centralized mixing service; ZachXBT traced some of those funds to addresses linked to AudiA6.

Whether law enforcement will pursue the matter or if the alleged legal threat will result in formal proceedings remains unresolved.