KuCoin crypto exchange agreed to leave the US market after a settlement with the US Department of Justice (DOJ) on Monday.
Peken Global Limited, a Seychelles-based entity that operates the KuCoin platform, was found guilty of violating anti-money laundering (AML) laws and processing billions of dollars in transactions, including funds from darknet markets, malware, ransomware, and fraud.
Settlement Agreement
KuCoin has agreed to pay over $297 million in fines and forfeitures as part of a settlement with U.S. authorities, including a criminal fine of over $112 million and a forfeiture of about $184 million.
Sponsored
Additionally, the exchange will suspend its operations in the US for at least two years. Founded in 2017, KuCoin has over 38 million users worldwide. The platform served approximately 1.5 million registered users located in the US, earning at least $184.5 million in fees from their operations.
Resolutions have also been reached between the DOJ and KuCoin’s founders, Chun Gan (“Michael”) and Ke Tang (“Eric”).
Both founders have agreed to step down from any managing roles and forfeit $2.7 million, with the DOJ agreeing to dismiss all charges against them.
According to DOJ, KuCoin violated US anti-money laundering laws by not implementing proper anti-money laundering (AML) and know-your-customer (KYC) programs, failing to report suspicious transactions, and not registering with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN).
Renews Commitment to Compliance
KuCoin announced that the settlement marks the beginning of a new era for the exchange, with a stronger focus on compliance and global operations under new CEO BC Wang.
A Singaporean with a Juris Doctor degree, Wang previously served as the exchange’s Chief Legal Officer and played a key role in developing KuCoin’s enhanced compliance framework.
According to KuCoin’s press release, the exchange has made notable progress in compliance over the past two years, implementing robust Know Your Customer (KYC) protocols for all users and securing operating licenses across multiple jurisdictions.
Why This Matters
The settlement marks a pivotal moment for KuCoin and the crypto industry, highlighting the growing regulatory pressure on exchanges, especially in the US. KuCoin’s exit from the US market could shift its global operations and influence the broader crypto ecosystem, particularly in increasingly regulated markets.
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