Cryptocurrency exchange KuCoin has admitted to operating an unlicensed money transfer business in the US and has agreed to pay fines and compensation totaling nearly $300 million.
In March 2024, US prosecutors charged Peken Global Ltd, a company registered in the Seychelles and operating the platform, along with its two co-founders. The allegations focused on the lack of KYC/AML programs and the absence of registration with FinCEN.
According to court documents, KuCoin will pay a $112.9 million fine and return $184.5 million earned from providing services to US customers.
The platform’s co-founders, Chun (Michael) Gan and Ke (Eric) Tang, were each fined $2.7 million. Criminal prosecution against them has been deferred for two years.
“For years, KuCoin avoided implementing required anti-money laundering policies. As a result, the platform was used to facilitate suspicious transactions worth billions of dollars, including the transfer of potentially illicit funds from darknet markets, malware, ransomware, and fraudulent schemes. Today’s admission of guilt and penalties highlight the cost of failing to comply with these requirements,” the official press release stated.
It is worth noting that in January, the operator of the crypto derivatives exchange BitMEX, HDR Global Trading Limited, agreed to pay a $100 million fine in a lawsuit filed by the US Department of Justice.
