The KuCoin exchange has been accused by the US of aiding money laundering through crypto by not imposing KYC and AML measures.
KuCoin agreed to pay a $300 million fine to the US. Image: CryptoSlate
According to Bloomberg, the cryptocurrency exchange KuCoin has pleaded guilty before the US authorities and agreed to pay a fine of up to $300 million.
KuCoin pleads guilty to unlicensed money transmission charge and agrees to pay penalties totaling nearly $300 millionhttps://t.co/0Unaqbvro6
— US Attorney SDNY (@SDNYnews) January 27, 2025
In March 2024, KuCoin and its two founders, Chun Gan (Michael) and Ke Tang (Eric), were accused by the US Department of Justice and the Commodity Futures Trading Commission (CFTC) of aiding in the laundering of up to $9 billion in dirty money by not imposing customer identity verification (KYC) and anti-money laundering (AML) requirements, thereby violating the US Bank Secrecy Act.
In the court hearing held on January 27, 2025 (US time), KuCoin's representatives decided to plead guilty to end the investigation and agreed to pay the $300 million fine set by the prosecutors. The two exchange founders will also have to pay an additional $2.7 million in individual fines.
In addition, the exchange will be banned from operating in the US for at least 2 years. However, a KuCoin spokesperson still pledged to maintain the same services and commitments to global customers, affirming its position as one of the leading cryptocurrency trading platforms in the world.
KuCoin also faced legal troubles in New York in 2023, resulting in the exchange paying a $22 million fine for operating without a license and listing crypto assets considered securities.
The KCS token price of KuCoin is up 11% on the news of the exchange resolving the case with the US government.
Recent 24-hour price movement of the KCS token, screenshot from CoinGecko as of 08:30 AM on January 28, 2025
Compiled by Coin68
