KuCoin, ranked as the seventh-largest cryptocurrency exchange, is facing intense regulatory pressure with over $1 billion in withdrawals in a single day.

The U.S. Department of Justice has charged KuCoin and its founders with operating without a license and violating anti-money laundering laws.

CryptoQuant CEO asserts KuCoin's financial health, noting unaffected Bitcoin and Ethereum reserves despite the legal issues.

The situation echoes the community's concerns following the FTX collapse, emphasizing the importance of liquidity and proper use of customer funds.

KuCoin's disclosed assets include 5.949 BTC and 99.358 ETH, with a total portfolio value of approximately $4.764 billion.

The case against KuCoin serves as a cautionary tale for other crypto exchanges about the necessity of complying with U.S. regulations.

The lawsuit news has negatively impacted COIN shares and comes amidst other significant crypto market activities.