The Seychelles-based cryptocurrency exchange settles its dispute with U.S. authorities. The founders sign deferred prosecution agreements.
According to Bloomberg, KuCoin has pleaded guilty to operating as a money transfer business without the necessary licenses, agreeing to pay a total fine of $300 million. The decision was formalized on January 27 before District Judge Andrew Carter in Manhattan.
Peken Global Ltd., one of the three entities operating under the KuCoin name, will pay a fine of $113 million and face forfeitures totaling $184.5 million. The exchange’s founders, Chun Gan and Ke Tang, have been charged with conspiracy for running an unlicensed money transfer business and failing to implement an adequate anti-money laundering program. Both have agreed to deferred prosecution agreements and will forfeit $2.7 million each.
According to the indictment, KuCoin violated the Bank Secrecy Act by failing to properly verify customer identities, neglecting to establish appropriate anti-money laundering protocols, and failing to report suspicious activity. These deficiencies in controls allowed the exchange to process transactions worth billions of dollars, including those linked to illicit activities.
Last December, KuCoin had already reached an agreement with the New York Attorney General’s office, agreeing to pay a $22 million fine and cease operations in the state. On that occasion, New York authorities had charged the company with operating without the required registration as a securities and commodities broker-dealer.
