<p class="is-style-lead">A substantial amount of ethereum (<a href="https://crypto.news/price/ethereum/">ETH</a>), valued at tens of millions of dollars, was sent to the ethereum burn address in a series of unusual transactions conducted by Kucoin in 2021. </p>



<p>Conor Grogan, head of product at&nbsp;Coinbase, discussed the transactions with 23,000 of his followers on Twitter.</p>



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<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">Thousands of Kucoin deposit addresses sent $10s of millions of dollars of ETH to the Ethereum burn address<br><br>This was back in September &#39;21- I don&#39;t think anyone ever noticed 🤷‍♂️<br><br>If you&#39;ve ever wondered why the null address has so much ETH in it, now you know <a href="https://t.co/JPBgxGGOVl" target="_blank">pic.twitter.com/JPBgxGGOVl</a></p>&mdash; Conor (@jconorgrogan) <a href="https://twitter.com/jconorgrogan/status/1663338755942502400?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">May 30, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>Within blockchain technology, the ethereum burn address, often called the null address, is a metaphorical black hole. Tokens sent to this address become irretrievable, effectively removing them from circulation, commonly known as burning.</p>



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<p>Given the exchange&#8217;s holding of substantial digital assets for traders, such a transaction raises concerns. However, the exact reasons behind this move remain unknown, as no concrete information has emerged to shed light on the circumstances that led to this situation.</p>



<p>The unexpected burns occurred over three days, commencing on September 7, 2021, and involving over 3,500 transactions of USDT (tether) and ETH.</p>



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<p>One theory suggests that KuCoin may have entered into a one-time agreement with Bitfinex, the entity behind tether, to redeem <a href="https://crypto.news/learn/what-are-stablecoins-and-how-do-they-work/">USDT</a>, supported by the available evidence. However, this argument must adequately explain why ETH was sent to the burn address.</p>



<p>Another theory proposes that this peculiar asset reshuffling could have been caused by a system malfunction or an oversight in the operation of an automated system. Despite several hypotheses, why KuCoin would burn such a substantial quantity of ETH remains unanswered. The mystery continues to baffle observers within the crypto community.</p>



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KuCoin allegedly burned millions in ETH in 2022

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