KuCoin Pays $300M in Fines, Founders Step Down

KuCoin Pleads Guilty to Operating Unlicensed Business, Pays $300M in Fines

KuCoin, a leading cryptocurrency exchange, has pleaded guilty to operating an unlicensed money-transmitting business and agreed to pay nearly $300 million in fines and forfeitures. The company, along with its founders Chun Gan and Ke Tang, faced charges in a Manhattan federal court as part of an agreement with prosecutors.

U.S. District Judge Andrew Carter imposed a $113 million fine and ordered $184.5 million in forfeitures, according to a U.S. Attorney’s Office statement. The charges stemmed from a March 2024 indictment against KuCoin and its founders, accusing the company of running an unlicensed money-transmitting business and failing to implement an anti-money laundering program.

As part of the settlement, Gan and Tang have signed deferred prosecution agreements, avoiding further legal action. Both founders will forfeit $2.7 million each. In a statement, Gan announced he has stepped down from all roles at the company as part of the settlement agreement, describing the resolution as a “favorable outcome” that dismisses all charges against him and co-founder Ke Tang upon satisfaction of specific conditions.

KuCoin will focus on global growth under CEO BC Wong’s leadership, with Gan expressing plans to pursue new blockchain ventures, reaffirming his belief in the technology’s transformative potential. Tang, also known as Eric, will also "no longer have any role in KuCoin’s management or operations,” prosecutors said.

The case follows KuCoin’s December 2023 settlement with New York state regulators, in which 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, with Seychelles-based BitMEX being ordered to pay for failing to comply with U.S. anti-money laundering laws earlier this month.