KuCoin Shiba Inu Manipulation: Did They Try to Buy Off Influencer?
The KuCoin controversy deepens! New skeletons are tumbling out of the closet each day in the KuCoin and Shiba Inu ‘shorting’ controversy. Allegations of market manipulation and illicit business practices are swirling, raising serious concerns about the exchange's operations.
KuCoin Accused of SHIB Manipulation: Influencer Claims Buyout Attempt
The core of the issue revolves around accusations that KuCoin allegedly manipulated the price of Shiba Inu (SHIB). According to reports, KuCoin is accused of allegedly manipulating Shiba Inu by encouraging investors to short SHIB for gains. YouTuber Tom Zuzolo leaked an email in his latest video showing KuCoin allegedly asked its users to short SHIB to win a prize pool of $15,000. If that wasn’t enough, some sources are suggesting that after an influencer exposed these tactics, KuCoin allegedly tried to buy them out to silence the information.
DOJ Accusations and Money Laundering Allegations
Adding fuel to the fire, the US Department of Justice (DOJ) has accused KuCoin of serious financial crimes. The DOJ accused KuCoin of processing up to $4 billion in transactions tied to illegal activities. The platform was also criticized for failing to follow basic rules like Anti-Money Laundering (AML) regulations. On Monday, January 27, Peken Global Ltd, one of the three entities collectively registered as KuCoin entered a guilty plea before the US District Judge Andrew Carter in Manhattan. Under KuCoin allegedly failed to maintain an Anti-Money Laundering program and allowed over $5 billion of suspicious and criminal funds to flow through the exchange.
Targeting US Customers with Anonymous Trading?
Further compounding the legal troubles, Prosecutors claim KuCoin actively courted illicit business, advertising to U.S. customers in 2025 that they could trade anonymously without KYC on unverified accounts. This blatant disregard for regulatory compliance has landed the exchange in hot water with authorities.
KuCoin's History with Shiba Inu
KuCoin is among the top exchanges that had listed the coin (Shiba Inu), giving it significant exposure to the crypto market. However, this listing is now under scrutiny given the accusations of market manipulation. The coinmarketbag community, with its 9.3K subscribers, is closely following the developments in this case. Get Bag of Best Cryptocurrency CoinMarketBag is the world's most-referenced info website for crypto investors.
What's Next for KuCoin and SHIB?
The situation surrounding KuCoin and its alleged manipulation of Shiba Inu is still developing. The legal repercussions for KuCoin could be severe, and the impact on Shiba Inu's price remains to be seen. Investors are urged to exercise caution and stay informed as more information becomes available.