Fresh allegations involving KuCoin are reigniting debate over how centralized crypto exchanges handle stolen funds, law enforcement requests, and blockchain-based financial crime as compliance standards across the industry continue evolving.

The latest controversy emerged after blockchain investigator ZachXBT responded to a user on X who claimed a hacked Trust Wallet resulted in the loss of 15 years of savings, with funds allegedly transferred through KuCoin.

In response, ZachXBT alleged that KuCoin “does not assist victims or law enforcement” and claimed the exchange allows illicit activity to continue “as long as it generates fees.”

The investigator also referenced previous incidents involving alleged laundering activity…