Crypto exchange KuCoin pleads guilty to US charges and agrees to pay $300 million: Bloomberg

Quick Take
- KuCoin agreed to pay almost $300 million in fines and forfeitures, Bloomberg reported.
- Prosecutors said in March that the exchange failed to maintain an adequate anti-money laundering program and failed to have a “reasonable procedure” in place to confirm customers’ identities.


Crypto exchange KuCoin has pleaded guilty to U.S. criminal charges related to operating an unlicensed money-transmitting business and agreed to pay almost $300 million in fines and forfeitures, Bloomberg reported.
KuCoin, doing business in part through Peken Global Ltd., entered its plea in a New York court on Monday. U.S. District Judge Andrew Carter in Manhattan levied a fine of about $113 million and forfeitures of $184.5 million, according to Bloomberg. MLex was first to report the news.
The Department of Justice charged KuCoin and two of its founders Chun Gan and Ke Tang last March over charges related to operating an unlicensed money-transmitting business and and violating the Bank Secrecy Act. Both Tang and Gan signed deferred prosecution agreements and agreed to forfeit around $2.7 million, according to reporting from Bloomberg.
In March, prosecutors said the exchange failed to maintain an adequate anti-money laundering program and failed to have a "reasonable procedure" in place to confirm customers' identities — and also failed to file suspicious activity reports. The Commodity Futures Trading Commission brought a parallel civil action at the time.
KuCoin had separately faced charges in New York in March 2023 for violating the state's laws governing the trading of securities and commodities. KuCoin agreed to pay $22 million in fines later in 2023 as part of a consent order and agreed to cease operations in the state.
KuCoin said it has agreed to leave the U.S. market for at least two years, according to a statement released by the exchange later on Monday. The exchange also said resolutions were reached between the DOJ and Tang and Gan, and noted that prosecutors agreed to dismiss all charges against them.
"While resolving regulatory challenges in the U.S., 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," KuCoin said.
Gan and Tang will no longer have a role at KuCoin in management or operations, the DOJ said in a statement on Monday.
"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 statement.
Update: Jan. 27, 10:30 p.m. UTC to include details throughout
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