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KuCoin has agreed to pay almost $300 million in fines after pleading guilty to operating an unlicensed money-transmitting business.
KuCoin's founders, Chun Gan and Ke Tang were charged with conspiring to operate an unlicensed money-transmitting business and failing to implement a robust anti-money-laundering program back in March 2024.
Prosecutors also claimed that the crypto exchange also failed to report suspicious transactions or register with the U.S. Department of the Treasury's Financial Crimes Enforcement Network, or FinCEN.
Seychelles-based Peken Global Ltd., one of the three entities operating as KuCoin, entered its plea before US District Judge Andrew Carter in Manhattan, who imposed a penalty comprising a $113 million fine and $184.5 million in forfeitures.
KuCoin is the eighth largest exchange by trading volume, according to CoinMarketCap.
The Chinese co-founders signed deferred prosecution agreements and agreed to forfeit approximately $2.7 million each.
This isn't the first time KuCoin has faced the music. In December 2023, KuCoin agreed to pay $22 million in fines and refunds to the New York Attorney General. Charges included running an unlicensed operation and hosting sketchy coin offerings.
Blockhead
"This resolution signifies a new chapter for KuCoin, one that reaffirms our dedication to compliance, security and innovation," BC Wong, KuCoin's chief executive, said in a statement.
"We are focusing on strengthening our global compliance practices and exploring opportunities to reenter the market with the necessary licenses," he added.
Gan's lawyer, Alexander Wilson, stated that the resolution underscores his client's absence of intent to breach US law or engage in activities such as money laundering, fraud, or other criminal conduct.
