OKX Re-enters US Market After $505M Settlement With DOJ

OKX, a Seychelles-based cryptocurrency exchange, has announced its reentry into the US market following a significant settlement with the Department of Justice (DOJ). The exchange has appointed Roshan Robert, a former director at Barclays, as its US CEO to oversee this strategic move. Robert expressed enthusiasm about the launch, stating that OKX's centralized crypto exchange and OKX Wallet will be available in the United States, with a regional headquarters established in San Jose, California.

All existing users of Okcoin, OKX's previous platform, will be transitioned to the new platform. This migration is expected to enhance the overall user experience by providing deeper liquidity, lower fees, and advanced trading tools. The rollout will be phased to ensure a smooth and secure onboarding process, with a broader nationwide launch planned for later in 2025. OKX has also promised integrations with local banks and support for major assets, including Bitcoin (BTC), Ether (ETH), USDt (USDT), and USDC (USDC). The company maintains a global proof of reserves for all its assets, which is published monthly by cybersecurity firm Hacken.

In addition to its trading platform, OKX is introducing OKX Wallet to its US-based customers. The wallet supports 130 blockchains and features a decentralized exchange (DEX) aggregator, allowing access to over 10 million tokens on platforms including Ethereum, Solana, and Base. This move underscores OKX's commitment to providing a comprehensive suite of crypto services to its users.

OKX's reentry into the US market comes after the exchange faced significant regulatory challenges. The company hired former New York Governor Andrew Cuomo to advise it during a federal probe that resulted in OKX pleading guilty to several violations. The exchange admitted to operating an unlicensed money-transmitting business in violation of US Anti-Money Laundering laws and agreed to pay $505 million in fines and penalties. This settlement includes $84 million in penalties and the forfeiture of $421 million in fees earned primarily from institutional clients.

Following the investigation, OKX has committed to improving its compliance efforts. The company's CEO, Star Xu, stated that OKX aims to become the gold standard of global compliance at scale across different markets and their respective regulatory bodies. This strategic move is part of OKX's broader effort to rebuild trust and establish a strong presence in the US market, despite the regulatory hurdles it has faced.