Surprising fact in the cryptosphere and revealed on May 30, 2023 by Conor Grogan! The crypto exchange KuCoin would have transferred millions of dollars of ETH and USDT to the Ethereum burn address in September 2021. Transactions which remain unexplained until then and which raise many questions.
Over 3500 transactions and millions of dollars of ETH and USDT transferred
Through a tweet, Conor Grogan, Chief Strategy Officer at Coinbase, reveals that KuCoin has carried out from September 7, 2021 and for three consecutive days, transfers of ETH and USDT to the Ethereum burn address .
As a reminder, a burn address is an invalid address intended only to receive assets that automatically become unrecoverable. Tokens sent to this address are withdrawn from circulation and are therefore “burned” or “engraved”. Developers transfer assets there in order to regulate supply and demand.
It is therefore a very common practice in the cryptocurrency industry. The only catch here is the large volume of transfers and the fact that they were made by KuCoin, a crypto exchange known for its crucial role when it comes to securing digital assets. For the record, KuCoin had hired the Mazars firm to ensure the safety and security of its users’ crypto funds.
In all, more than 3500 transactions with a total value of several tens of millions of dollars have been carried out. Doubts, questions and speculations have been rife in the cryptosphere since the discovery of these transfers.
Guesswork, but no concrete explanation
If official explanations are still not available, conjectures are multiplying. The first hypothesis suggests that a system problem or malfunction in an automated process may have been the basis of these unusual transactions. But this assumption does not hold water, because no official information was given about a possible system problem by KuCoin.
Experts are also wondering about the possibility of a one-off agreement between KuCoin and Bitfinex for a tether buyout. Conor Grogan has also made this assumption in his tweet. However, the theory of a takeover is also quickly swept away, because it does not explain why KuCoin transferred such a large sum to the Ethereum burn address.
Inadvertent transfers or buyback of tether? The motive for the transactions remains a mystery. The KuCoin crypto exchange, which has already been the subject of several rumors in the past, will perhaps be explained in the days to come.
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