OKX Pays $505 Million Fine After Federal Probe, Cuomo Advises

Former New York Governor Andrew Cuomo has been involved in advising the cryptocurrency exchange OKX on legal matters related to a federal probe. The probe, which resulted in OKX pleading guilty to several violations of US Anti-Money Laundering laws, led to the firm agreeing to pay $505 million in fines and penalties. Cuomo, who is a New York-registered attorney, began advising OKX after his resignation as governor in August 2021. He reportedly provided regular counsel to the company's executives on how to respond to the criminal investigation.

The Seychelles-based firm admitted to operating an unlicensed money-transmitting business in violation of US Anti-Money Laundering laws. This admission came despite OKX having an official policy since 2017 that prevented US persons from transacting on its crypto exchange. The violations occurred between 2018 and 2024, highlighting a significant lapse in compliance. As part of the settlement, OKX agreed to pay $84 million in penalties and forfeit $421 million in fees earned primarily from institutional clients.

Cuomo's involvement extended beyond legal advice. He also influenced OKX to appoint his friend, former US Attorney Linda Lacewell, to the company's board of directors. Lacewell, who previously served as the superintendent of the New York Department of Financial Services, was added to the board in 2024 and was named OKX’s new chief legal officer on April 1. This appointment underscores Cuomo's continued influence in the legal and regulatory landscape of the cryptocurrency industry.

Following the conclusion of the investigation, OKX announced plans to hire a compliance consultant to address the issues identified during the probe and enhance its regulatory compliance program. OKX CEO Star Xu expressed the company's commitment to becoming a global standard for compliance, aiming to set a benchmark across different markets and their respective regulatory bodies.

Cuomo, who is now running for mayor of New York City, has been providing private legal services to individuals and corporations since his resignation. A spokesperson for Cuomo confirmed that he has not represented clients before a New York city or state agency and routinely recommends former colleagues for positions. OKX, however, declined to comment on its relationships with outside firms.