Key Takeaways:
- KuCoin’s $300M Settlement: KuCoin pleaded guilty to operating an unlicensed money-transmitting business in the US, agreeing to pay $297.4M in fines and forfeitures.
- Founders Step Down: Michael Gan and Eric Tang will forfeit $2.7M, resign from management roles, and meet conditions for deferred prosecution.
- Regulatory Crackdown: The settlement highlights ongoing enforcement, with US authorities collecting over $19B from crypto firms since October last year.
KuCoin, a cryptocurrency exchange, has pled guilty to operating an unlicensed money-transmitting business and agreed to a $300 million settlement with U.S. authorities.
This includes a $184.5 million forfeiture, a $112.9 million fine, and a commitment to exit the U.S. market for two years.
We’re pleased to announce that KuCoin has reached a settlement with U.S. authorities, a major step forward in our journey. This milestone brings clarity to our future and strengthens our commitment to innovation, compliance, and delivering value to our 38M+ users worldwide.… pic.twitter.com/EVZI1UI4Zc
— KuCoin (@kucoincom) January 27, 2025
KuCoin’s founders, Michael Gan and Eric Tang, will also step down from management roles and forfeit $2.7 million.
The settlement stems from accusations of inadequate Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols, with claims that the exchange allowed users, including U.S. residents, to trade anonymously until mid-2022.
KuCoin also failed to register with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN).
In response, KuCoin reassured users that its operations outside the U.S. remain unaffected and outlined plans to strengthen its compliance and security.
Michael Gan described the settlement as a constructive resolution, emphasizing no intent to violate U.S. laws. BC Wong, KuCoin’s Chief Legal Officer, will succeed him as CEO.
Today marks a significant milestone for KuCoin and the crypto community. I’m proud to share that we’ve reached a settlement with U.S. authorities, providing clarity for our future growth.
— BC Wong (@BC_KuCoin) January 27, 2025
This moment is not just about resolving challenges—it’s about looking ahead with renewed… pic.twitter.com/YjVVdVA9s6
This development reflects increasing regulatory scrutiny on crypto firms, with authorities collecting over $19 billion in settlements by late 2024.
KuCoin’s case follows similar enforcement actions against BitMEX and others for failing to meet U.S. AML requirements.
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