We recently published an investigation about the fraudulent project where scammers sent illegally obtained funds to a large exchange that we believed had a good anti-fraud system (a transaction from the r31G7de4rVWidcj6qXLfAw9gCm1jVGna3w wallet).
In addition to publishing the investigation, PureFi wrote to KUCOIN warning that it noticed this transaction and asked to block it after providing them with all the screenshots as evidence. Also, PureFi tried to make sure that the address was marked as a scam.
What a surprise it was when PureFi received such an unexpected response from KUCOIN.
The company replied with a standard answer and indirectly confirmed that it will not block the client’s funds without an official request from the police, which sounded shocking since KUCOIN is a licensed institution and should have at least requested documents of where the money came from. Judging from the answer, KUCOIN didn’t do anything and the scammers easily laundered the illicit assets by covering their tracks through the official exchange.
When writing this article, PureFi looked again at the wallet, and another surprise was that even when it was marked high risk, the money was still withdrawn from the exchanges but this time on binance.com, okex.com, and hitbtc.com.
PureFi continues to develop its product that will detect such fraudulent projects and further showcase them.