Quickly understand the history and background of various well-known coins

KuCoin Admits Unlicensed Money Transmission, Pays $300M in Fines

Coin WorldMonday, Jan 27, 2025 5:54 pm ET

1min read

KuCoin, a Seychelles-based cryptocurrency exchange, has acknowledged allegations of conducting unlicensed money transmission in the United States. The company's founder has reached a deferred prosecution agreement with the U.S. Department of Justice (DOJ).

KuCoin pleaded guilty to operating an unlicensed money-transmitting business and agreed to pay $300 million in combined fines and forfeitures, according to a Bloomberg report. Peken Global Ltd., one of three entities operating as KuCoin, entered the plea on Monday in Manhattan before US District Judge Andrew Carter. The penalties consist of a $113 million fine and $184.5 million in forfeitures.

KuCoin founders Chun Gan and Ke Tang were charged with conspiring to operate an unlicensed business and failing to implement an anti-money-laundering program. Both agreed to 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. These compliance failures reportedly enabled the exchange to process billions in transactions, including those tied to illicit activities.

The exchange previously settled a civil case with the New York Attorney General’s Office in December 2023, paying $22 million in fines and agreeing to stop operations in the state. New York authorities had accused KuCoin of operating without proper registration as a securities and commodities broker-dealer and misrepresenting itself as a crypto exchange.

The case follows recent enforcement action against BitMEX, another Seychelles-based crypto exchange, which was ordered to pay $100 million for violating US anti-money laundering laws.

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.