KuCoin Pays $300M Fine, Founders Resign Amid Money Laundering Charges

KuCoin, a Seychelles-based cryptocurrency exchange, has faced significant legal consequences for operating an unlicensed money-transmitting business. The company pleaded guilty and agreed to pay a combined total of $300 million in fines and forfeitures. This penalty includes a $113 million fine and $184.5 million in forfeitures.

The founders of KuCoin, Chun Gan and Ke Tang, were charged with conspiring to operate an unlicensed business and failing to implement an anti-money-laundering program. Both founders signed deferred prosecution agreements and will forfeit $2.7 million each. The indictment alleged that KuCoin violated the Bank Secrecy Act by failing to verify customer identities, establish proper anti-money-laundering protocols, and file suspicious activity reports.

As part of the settlement, Gan announced his resignation from all roles at the company. He described the resolution as a "favorable outcome" that dismisses all charges against him and co-founder Ke Tang upon satisfaction of specific conditions. Gan emphasized that neither he nor Tang intended to violate U.S. laws. KuCoin will now focus on global growth under the leadership of CEO BC Wong.

The case follows KuCoin's December 2023 settlement with New York state regulators. The exchange agreed to pay $22 million in fines and refunds and halted trading in New York, resolving allegations it operated without proper registration as a securities and commodities broker-dealer.

The KuCoin penalty is the latest in a series of U.S. enforcement actions targeting crypto exchanges. Earlier this month, Seychelles-based BitMEX was ordered to pay $100 million for violating U.S. anti-money laundering laws.