Crypto exchange KuCoin has pleaded guilty to criminal charges and agreed to a fine of almost $300 million.
In a plea entered in a New York court on Monday, January 27, KuCoin accepted the fines and forfeitures after pleading guilty to criminal charges related to operating an unlicensed money-transmitting business. The prosecutors argued that the exchange failed to adequately keep up anti-money laundering programs in March of last year. In addition, KuCoin failed to offer a “reasonable procedure” to confirm customer identities, as reported by MLex.
The exchange has been slapped with a fine of around $112 million and forfeitures of $184.5 million by US District Judge Andrew Carter in Manhattan. This follows charges of operating an unlicensed money-transmitting business and and violating the Bank Secrecy Act against KuCoin and two of its founders Chun Gan and Ke Tang from the Department of Justice in March last year.
Both Gan and Tang signed deferred prosecution agreements at the time, forfeiting around $2.7 million. This is on top of the forfeitures from the company.
KuCoin’s turbulent history in the courts
KuCoin has already faced separate charges in March 2023 for violating New York state laws regarding the trading of securities and commodities. At that point, the exchange agreed to pay $22 million in fines later in 2023 and agreed to cease operations in the state.
Now, KuCoin has agreed to leave the US market altogether for the span of at least two years, writing in a public statement: “While resolving regulatory challenges in the US, we want to reassure our global users that our operations in other non-restrictive markets remain fully unaffected. KuCoin continues to deliver secure and innovative services worldwide, reflecting our dedication to growing as a leading cryptocurrency exchange.”
At the same time, the DoJ has confirmed that Gan and Tang will no longer have a role at KuCoin in either management or operations, the DOJ said in a statement on Monday. Their prosecution has been deferred for a period of two more years.
“Today’s guilty plea and penalties show the cost of refusing to follow these laws and allowing unlawful activity to continue,” said U.S. Attorney Danielle Sassoon in the official statement.
Featured image: Midjourney