Cryptocurrency exchange KuCoin experienced a significant outflow of digital assets exceeding $1 billion in the 24 hours following its indictment by the U.S. Department of Justice on money laundering charges, according to a report by CoinDesk on March 27th.

Citing data from blockchain analytics firms Nansen and Archam, CoinDesk's article details a surge in outflows on the Ethereum Virtual Machine (EVM) chain, totaling $1.083 billion, while inflows amounted to only $144 million during the same period. Nansen's data excludes Bitcoin outflows.

The report further states that Nansen, in a social media post, characterized the outflow as exceeding 15% of the exchange's holdings. Archam Intelligence's data corroborates this, indicating a decline in KuCoin's overall cryptocurrency holdings, including Bitcoin, from $6 billion to $4.8 billion within a day.

Given the relative stability of cryptocurrency market prices during this timeframe, CoinDesk attributes the substantial decline in KuCoin's assets primarily to investor withdrawals.

Concerns of a "Second FTX"

The article also mentions the emerging anxieties within the cryptocurrency community regarding KuCoin's potential resemblance to the collapse of FTX, another major exchange, in late 2023. The CEO of CryptoQuant, a cryptocurrency data analysis firm, is quoted as expressing these concerns.