KuCoin Suspends Mining Pools Indefinitely, Provides No Explanation

Updated: 03 August 2023

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KuCoin said it’s suspending its Bitcoin (BTC) and Litecoin (LTC) mining pools from Aug. 15 until further notice

It said the decision was in line with its “evolving business strategy” but provided no further explanation in an Aug. 2 statement.

“We deeply regret any inconvenience this might cause, and we remain grateful for your unwavering support and understanding,” it said.

The service, which facilitated proof-of-work, had a long-term objective to become one of the biggest proof-of-work mining pools in the world to improve the security of various public chains.

KuCoin announced that it will suspend the operation of the BTC and LTC mining pools on August 16. The current hashrate of the KuCoin BTC mining pool is 7.72 EH/s. Previously, KuCoin started layoffs of nearly 30% and will focus on core business. https://t.co/6c5O2zMuDO

— Wu Blockchain (@WuBlockchain) August 2, 2023

The KuCoin Bitcoin and Litecoin mining pools have hash rates of 9.08 exahashes per second (EH/s) and 3.90 terrahashes per second (TH/s), respectively, at the time of writing. The overall hash rate for the Bitcoin network is 349.19 EH/s, whereas the overall hash rate for the Litecoin network is 792.16 TH/s.

Users of KuCoin mining pools have till August 27 to back up and store their mining data. The exchange has recommended that its mining pool users switch to alternatives before the deadline.

KuCoin assures the community that suspending its mining pool operations does not impact the rest of its services, such as its exchange operations. In addition, the assets of its users are secure on its platform.

“We wish to emphasize that the security and integrity of your assets are our utmost priority. Throughout this suspension, you will retain complete access and control over your assets, and all other KuCoin offerings remain operational as usual,” KuCoin’s statement adds.

The exchange says it has more than 20 million accounts.

KuCoin Denied Report of Staff Cuts

The mining pool suspension announcement comes after the exchange refuted rumours of layoffs less than a week ago. KuCoin CEO Johnny Lyu denied there were staff layoffs and said employee reviews were part of normal business operations.

The company employs around 1,000 people globally, a number Lyu said is continuously rising.

There is speculation that the latest change in KuCoin’s business strategy may be related to the lawsuit the New York Attorney General filed against it that alleges the platform’s Know Your Customer systems were flawed. KuCoin has strengthened its KYC procedures since, reportedly decreasing trading activity and revenue.

The exchange has mandated Know Your Customer (KYC) user rules from July onwards. Existing customers will be allowed to deposit only once they finish their KYC requirements.

With 1.2% of the network’s total hash rate during the last three days, KuCoin’s mining pool is the ninth-largest in terms of hash rate share, according to BTC.com.

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