Canadian Trader’s $2.8M CAD Trapped on KuCoin for 8 Months

A Canadian crypto trader faces a prolonged account freeze after KuCoin locked more than $2.8 million CAD for eight months. The issue surfaced publicly after a user named Adil, who is the trader’s cousin, shared the case on X while seeking help from the crypto community. 

According to Adil, KuCoin froze his cousin’s account after a big withdrawal on July 16, 2025. The exchange called it a “standard precautionary review.” However, the review has dragged on for months even though all the required documents were submitted. 

https://twitter.com/ezyadil/status/2029664010002428259?ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener

As per the post, the trader provided KYC information, proof of wealth, and bank statements, but he still can’t access his money. 

This situation has sparked a fresh conversation about the risks of using centralized exchanges and how little protection users sometimes have.

Adil explained that KuCoin later said the freeze happened because of a “system anomaly.” As a result, the exchange said it had to manually review every trade before releasing the funds. This has left the trader stuck in uncertainty for months.

He said the situation caused extreme stress for his cousin, and also pointed out that KuCoin moderators publicly denied there was any issue. Moreover, they reportedly warned his cousin about “repeatedly submitting inaccurate details.” However, Adil said private emails from KuCoin admitted the problem was actually their internal system error.

KuCoin responds to public complaint

KuCoin responded soon after the post started getting attention on social media. The exchange asked the user to share account details privately. On X, KuCoin wrote, “Hello ezy, we have noted the details provided regarding your cousin’s account. We take matters involving account reviews and fund security very seriously. Please have him contact us via DM with his official UID. We have just sent you a direct message.”

https://twitter.com/kucoincom/status/2029761796756955455?ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener

Besides KuCoin’s official reply, many crypto users shared similar stories about issues with centralized exchanges. One user, SHILORD, talked about losing a large amount of money after a security problem. He wrote, “All exchanges do this type of stuff Trust none of them especially coinbase there one of the worst out there They have vulnerabilities allowing people to withdraw your funds to other peoples debit cards after converting your crypto to fiat. I lost over $80,000 like this. They did nothing to assist.”

Additionally, another trader highlighted past delays involving exchange reviews. Smokez commented, “Typical CEX practice. Never used a CEX since binance froze my funds in 2021 with same ‘review’ process and took 12 months to respond / unlock after social media bashing.”

Regulatory pressure on KuCoin in Canada

Regulators have already been keeping a close watch on KuCoin’s operations in Canada. In September, Canada’s financial intelligence agency FINTRAC fined the exchange 19.5 million Canadian dollars. The watchdog said KuCoin violated anti-money laundering compliance rules.

Investigators also found that KuCoin didn’t register as a foreign money services business. FINTRAC reported that nearly 3,000 crypto transactions over $10,000 went unreported between 2021 and 2024. The exchange reportedly missed 33 suspicious transaction reports, even though some showed potential criminal activity.

Some flagged transactions involved darknet marketplaces and companies linked to synthetic drug materials. As a result, regulators warned that reporting failures weaken financial intelligence systems.

Furthermore, the Ontario Securities Commission previously fined KuCoin and Bybit for violating securities laws. Enforcement Chief Jeff Kehoe stressed strict compliance requirements. He said, “Foreign crypto asset trading platforms that want to operate in Ontario must play by the rules or face enforcement action.”

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