OKX Fined $500M for US Money Laundering Violations

Cryptocurrency exchange OKX has been fined $500 million by U.S. authorities for violating American anti-money laundering laws. The company pleaded guilty on Monday in New York and agreed to pay the combined fines and forfeited fees.

According to U.S. authorities, OKX failed to obtain a money transmitter license in America and had to settle the case in court. The settlement was reached after an investigation by the U.S. Department of Justice, which concluded that a fee constituting $84 million in penalties, and $421 million in earned fees while operating with mainly institutional clients in America.

OKX responded that American clients only make up a small percentage of the exchange’s user base and that none of these clients remain on the platform. However, prosecutors said that between 2018 and 2024, OKX allowed for American clients to use its platform even though its own policy disallowed them from doing so. Further, around $5 billion of suspicious and criminal transactions occurred amongst these clients.

One employee, for example, allegedly encouraged an American client to say they were from the United Arab Emirates to avoid the American firewall. The DOJ press release stated that OKX had failed to obtain a money transmitter license and sought out customers in the United States, including the Southern District of New York. Despite being unable to have American clients, OKX has promoted itself in America by sponsoring the Tribeca Film Festival in Manhattan.

OKX responded that it takes “full accountability for its past shortcomings” and wants to do everything possible to increase user security and to promote crypto adoption. James Dennehy, FBI Assistant Director, wrote, “For years, OKX flagrantly violated U.S. law, actively seeking customers in the United States-including here in New York-and even going so far as to advise individuals to provide false information to circumvent requisite procedures”. On February 24, OKX responded, “The Company acknowledged that, as a result of legacy compliance gaps, certain US customers had in the past traded on the company’s global platform.”