The crypto exchange KuCoin recently confirmed that a user's address is allegedly responsible for thousands of memecoin scams. Despite this, the exchange has decided not to freeze the user's assets without any official notice from law enforcement.

According to a Twitter user, the wallet address in question launched two to five memecoins daily for two years. Another individual added that KuCoin owned and controlled the wallet addresses. Etherscan, a blockchain explorer, has already marked the wallet address as a fake phishing wallet.

KuCoin confirmed that the wallet belongs to one of its users in a statement sent to Cointelegraph. Johnny Lyu, a representative of KuCoin, explained that while the address belongs to a user, the exchange will not freeze the account until it receives an official notice from relevant authorities. Lyu also mentioned that the exchange would cooperate with law enforcement agencies once they provide relevant legal documents or procedures.

The exchange encourages community members to report any suspicious behavior to the police and submit relevant materials to KuCoin's team. After receiving the necessary documents, KuCoin would be happy to cooperate with authorities.

KuCoin faced challenges recently when its official Twitter account was compromised on April 24. The attacker posted fake activity, causing some followers to lose their assets. However, after identifying the breach, the exchange worked with Twitter to recover the social media account and promised to reimburse those affected by the hack.