KuCoin Settles with U.S. Authorities, Pays $300M, Exits U.S. for Two Years

KuCoin Settles With U.S. Authorities Amid Potential Shift in Crypto Regulation Landscape

KuCoin, a leading cryptocurrency exchange, has reached a settlement with U.S. authorities, marking a significant step forward in its journey. The exchange announced the news on X (formerly Twitter), stating that this milestone brings clarity to its future and strengthens its commitment to innovation, compliance, and delivering value to its 38 million users worldwide.

In a much more serious episode than previous legal challenges, KuCoin pleaded guilty to criminal charges in federal court. The firm was accused of failing to comply with financial compliance regulations, charges which include significant jail time. However, thanks to their plea, KuCoin founders Chun Gan and Ke Tang will not suffer the full impact of these charges.

U.S. District Judge Andrew Carter sentenced the firm to pay nearly $300 million in fines and forfeitures. However, although these executives will not go to prison, their company still could be in dire straits. The exchange will have to exit the U.S. market for two years.

Peken Global Limited, which has operated the KuCoin cryptocurrency exchange, pled guilty to operating an unlicensed money transmitting business. It will pay $297 million and exit the U.S. for two years; Chun Gan and Ke Tang will not have any role in KuCoin.

Since the federal government first filed charges against KuCoin, its investors and customers have been running for the door. Users withdrew over $1.2 billion from the platform on the first day after the filing. User-held reserves then plunged over 20% in less than a week.

Surprisingly, despite the ongoing scrutiny, KuCoin’s native token, KCS, has performed well throughout the bull market. The altcoin gained nearly 20% in January and remained rather unphased after today’s news.

This case actually fits in with the sweeping pro-crypto regulatory changes under President Trump. Specifically, KuCoin faced these charges in the Southern District of New York (SDNY), a federal court that deals with finance crimes. The SDNY’s US Attorney vowed to stop crackdowns on crypto criminals, but only after finishing extant cases. Overall, it’s a positive step for the exchange as it closes the chapter on the DOJ’s lawsuit.