KuCoin is one of few cryptocurrency exchanges where it is still possible to do trading and withdrawals without performing mandatory KYC. For margin trading, yes, Level-1 KYC is mandatory.
One unfortunate reddit user had his $172,000 position liquidated when he was unable to log into his account. According to the aforementioned screenshot, he had 905,000 VET that is worth around $116,000. He also had ~$57,000 USDT stored in margin trading account.
The user was locked out of his account, but was still receiving text messages containing liquidation notices. He has mentioned that wrong password was not the reason of him getting locked out by KuCoin. Mysterious – very.
Many users get locked out for suspicious login attempts, but why liquidate his position? Locking and blocking are two different things. KuCoin did not ask for additional KYC anywhere. While the position is substantial, it is not in millions that additional KYC would be required.
Many have openly criticized the horrible customer support on Kucoin’s subreddit. It is as if nobody seems to care. One user jokingly mentioned about an open customer service position at KuCoin, where he is asking redditors to join and help out other redditors, who have their money stuck on KuCoin.
We hope the user gets his money back from KuCoin. Losing money to something that is not in their hands would be worst thing.
He is the Associate Editor and lives in New York. He eats charts for breakfast.