Key Takeaways:
- $505M Settlement: OKX’s operator pleaded guilty to running an unlicensed money-transmitting business and agreed to pay $505M in penalties.
- Regulatory Violations: The DOJ found compliance breaches from 2018 to early 2024, with OKX allegedly facilitating $5B in suspicious transactions.
- Future Compliance Measures: OKX will enhance its regulatory framework with a compliance consultant, reaffirming its commitment to global compliance.
OKX, a major cryptocurrency exchange operated by Aux Cayes FinTech Co. Ltd, has agreed to pay $505 million in penalties to settle a U.S. Department of Justice (DOJ) case.
The company pleaded guilty to running an unlicensed money-transmitting business in violation of U.S. Anti-Money Laundering laws.
We cooperated with the US Dept of Justice in their thorough investigation of our business. We had a small percentage of customers who were able to use our international services due to historical compliance gaps. Today our compliance controls are among the leading in the… pic.twitter.com/sg1b2GC4wE
— OKX (@okx) February 24, 2025
The settlement includes an $84 million fine and the forfeiture of $421 million in fees, primarily earned from institutional clients.
The DOJ investigation found that OKX knowingly allowed U.S. customers to access its global platform despite officially banning them since 2017.
The company facilitated over $5 billion in suspicious transactions between 2018 and early 2024.
Authorities accused OKX of advising individuals on how to evade compliance procedures, which the FBI condemned as a blatant disregard for regulations.
Now at SDNY guilty plea of "OKX crypto exchange for a scheme of over $500 million for operating an unlicensed money transmitting business in violation of anti-money laundering laws" – Inner City Press will live tweet below pic.twitter.com/rlhApBKZsk
— Inner City Press (@innercitypress) February 24, 2025
OKX acknowledged past compliance gaps but emphasized that U.S. users made up only a small portion of its customer base and that none remain on the platform.
The company also stressed that no customers were harmed and no employees were charged.
To improve regulatory adherence, OKX will work with a compliance consultant.
CEO Star Xu reaffirmed the company’s commitment to strengthening its compliance framework and becoming a leader in global financial regulations.
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