"OKX Pays $505M Fine: US Cracks Down on Crypto AML Violations"

The regulatory landscape for cryptocurrency in the United States is undergoing significant shifts, with two major developments signaling potential changes in enforcement and oversight. OKX’s operator, Aux Cayes FinTech Co. Ltd., has pleaded guilty to operating an unlicensed money-transmitting business, agreeing to pay over $500 million in fines following an investigation by the Department of Justice (DOJ). Meanwhile, under new leadership following President Donald Trump’s inauguration, the Securities and Exchange Commission (SEC) has been engaging with industry leaders and reconsidering some of its previous enforcement actions, raising speculation about a more flexible approach to crypto regulation.

OKX’s Aux Cayes FinTech pleaded guilty to violating US Anti-Money Laundering (AML) laws and agreed to pay a staggering $505 million in fines and forfeitures. The company admitted to operating an unlicensed money-transmitting business that facilitated over $5 billion in suspicious transactions and criminal proceeds. As part of the resolution, the Seychelles-based crypto exchange will pay $84 million in penalties and forfeit $421 million in fees collected from mostly institutional clients.

The settlement, announced on Feb. 24, 2025, follows an extensive investigation by the US Department of Justice (DOJ), which found that OKX knowingly allowed US-based customers to trade on its global platform, despite lacking the necessary approvals. The US Department of Justice was unambiguous in its condemnation of OKX’s practices, with Acting US Attorney Matthew Podolsky stating that the guilty plea sends a clear message to financial institutions. "Today’s guilty plea and penalties emphasize that there will be consequences for financial institutions that avail themselves of US markets but violate the law by allowing criminal activity to continue," Podolsky said.

Meanwhile, FBI Assistant Director in Charge James E. Dennehy revealed that OKX actively advised users to falsify information to bypass regulatory requirements. "Blatant disregard for the rule of law will not be tolerated," Dennehy emphasized. The DOJ noted that OKX’s violations spanned from 2018 to early 2024, despite the company having an official policy to block US customers since 2017.

Following the DOJ’s announcement, OKX released a statement acknowledging "legacy compliance gaps" but maintained that the number of US clients involved was minimal and that none remain on the platform today. OKX also