KuCoin (CRYPTO:KCS) is currently experiencing significant turmoil following a complaint filed by the US government, which has led to users withdrawing approximately $500 million in Ethereum (CRYPTO:ETH).

According to recent data from SpotOnChain, the cryptocurrency exchange witnessed substantial outflows in a short period.

Despite the mass withdrawals, beyond the immediate financial implications, KuCoin's hot wallets are reported to still contain assets valued at over $3.6 billion.

This development is part of a larger situation that saw users pulling out more than $1.2 billion amid charges in the US, raising concerns and prompting a closer examination of the exchange’s financial health and stability.