KUCOIN Fined $300m After Pleading Guilty for Ignoring Anti-Money Laundering Law
KuCoin, which is one of the largest crypto-exchanges, pleaded guilty to one count of violating US anti-money laundering laws.
Key Legal Developments of the Case
In March 2024, the US Department of Justice filed a case against KuCoin and its co-founders. The charges included conspiracy to operate an unlicensed money-transmitting business and violating the bank secrecy act by failing to implement an adequate anti-money laundering program.
On Monday, Danielle Sason, the newly appointed interim head of the Manhattan US attorney’s office, announced that the federal government had reached a settlement with Kucoin.
KuCoin failed to implement effective anti-money laundering and know-your-customer programs, report suspicious transactions, and did not register with the US Department of Treasury’s Financial Crimes Enforcement Network, said the Justice Department.
The Seychelles-based firm agreed to pay $297 million. It will also exit the US market for at least two years.
Two of KuCoin’s founders, Chun Gan and Ke Tang, who were also facing criminal charges, agreed to step away from all operations within the exchange.
KuCoin’s Way Forward and Future plans
”We are pleased to announce that we have reached a resolution with the U.S. Department of Justice (DOJ), bringing clarity and closure to past matters. The resolution underscores KuCoin’s commitment to acting responsibly and operating with high compliance standards.” Kucoin explained in its statement.
In response to the settlement, KuCoin has appointed its Chief Legal Officer, B.C. Wong, as the new Chief Executive Officer. The company stated that the resolution marks a pivotal moment, allowing it to focus on compliance and innovation.
KuCoin has expressed intentions to re-enter the U.S. market in the future with proper licensing and has indicated that it has made compliance remediations over the past year.
As KuCoin tries to resolve regulatory challenges in the US, it raises a concern to its daily users, some panicking due to the enforced restrictions that might be imposed on the platform and others questioning the safety of their funds.
