KCEX is a cryptocurrency exchange registered in Seychelles that claims to hold regulatory licenses but only has an MSB (Money Services Business) registration with FinCEN, which is NOT a license to operate an exchange. The platform has numerous documented cases of users having funds frozen under vague "risk control" policies, bonuses systematically denied, and excessive withdrawal delays despite completing KYC verification.
The exchange was flagged by blockchain investigator ZachXBT in March 2025 alongside other offshore exchanges that lack proper transparency and regulatory oversight.
Critical Red Flags
Funds Confiscation
KCEX has a documented pattern of confiscating user funds under the guise of "risk control" and "abnormal activity," even after users complete full KYC verification and previously made successful withdrawals.
Documented case: User had 1,086.71 USDT in account. Account frozen for "risk control review" on August 21. Provided ID, handwritten note, full KYC. Deadlines extended: Aug 23 → Aug 31 → Sep 14. On Sep 14, account had only 272.83 USDT remaining. 813.88 USDT stolen by the exchange. Account permanently banned, no recourse.