Woofun AI reports that KuCoin dispatched a legal threat email to a victim who lost approximately $250,000 to an Atomic Stealer malware campaign. The illicit proceeds were processed through a KuCoin account utilizing a purchased KYC identity, with funds subsequently moving into multiple deposit addresses. On-chain investigator ZachXBT highlighted this incident alongside previous warnings regarding the exchange's account freezing practices, facilitation of illegal activities, and delayed cooperation with law enforcement.