Cryptocurrency exchange KuCoin has encountered a significant exodus of approximately $500 million in withdrawals shortly after being hit with criminal charges by the U.S. government. The withdrawals included the loss of $274 million worth of Tether (USDT), $55 million worth of Ethereum (ETH), $46 million worth of Ondo (ONDO), and millions of dollars worth of other tokens. Despite this, the exchange still holds approximately $3.6 billion worth of cryptocurrencies in its hot wallets. The charges brought against KuCoin and two of its founders include violating the Bank Secrecy Act and accusations of enabling money laundering. They have also been accused of misleading investors about their user base composition and failing to obtain necessary regulatory approvals in the U.S., despite a significant percentage of its users being U.S. citizens. The cryptocurrency community has reacted predictably to the news, with Jake Chervinsky, chief legal officer at Variant, highlighting the necessity of following U.S. law to access the U.S. market. KuCoin, on the other hand, has maintained a defiant stance, assuring users that their assets remain safe and that their legal team is investigating the details of the charges. The exchange has also acknowledged that withdrawals are being delayed due to the high volume of transactions.