"KuCoin Pleads Guilty, Pays $300M in Crypto Case"

Seychelles-based crypto exchange KuCoin pleaded guilty on Monday to operating an unlicensed money-transmitting business and agreed to pay nearly $300 million in fines and forfeitures. The company, through its entity Pekeen Global Ltd., entered the plea in a Manhattan federal court as part of an agreement with prosecutors.

The charges stemmed from a March 2024 indictment against KuCoin and its founders, Chun Gan and Ke Tang, both Chinese nationals. Prosecutors accused the company of running an unlicensed money-transmitting business and failing to implement an anti-money laundering program. The company was also charged with violating 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, U.S. District Judge Andrew Carter imposed a $113 million fine and ordered $184.5 million in forfeitures. Gan and Tang 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. 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.

Gan said KuCoin would focus on global growth under CEO BC Wong's leadership, calling the team "exceptional." He also expressed plans to pursue new blockchain ventures, reaffirming his belief in the technology's transformative potential.

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.

Coinbase CEO Brian Armstrong recently stated that the crypto exchange will need to rethink how it lists new coins for trading given the never-ending stream of new tokens being created. Armstrong said there are too many