KuCoin, one of the largest cryptocurrency exchanges, pleaded guilty on Monday to operating an unlicensed money transmitting business and agreed to pay over $297 million in fines and forfeitures, according to the U.S. Department of Justice.
Peken Global Ltd, which operates as KuCoin, entered its plea before U.S. District Judge Andrew Carter in Manhattan. The settlement includes a $112.9 million criminal fine and $184.5 million forfeiture, requiring KuCoin to cease operations in the U.S. for at least two years.
Two KuCoin founders, Chun Gan (Michael) and Ke Tang (Eric), accepted two-year deferred prosecution agreements. They also agreed to forfeit $2.7 million each and relinquish their roles in the company’s management and operations.
Prosecutors stated that Seychelles-based KuCoin was used for billions of dollars in suspicious transactions, including transmitting proceeds linked to darknet markets, malware, ransomware, and fraud. They cited the exchange’s lack of anti-money laundering and know-your-customer programs as contributing factors.
KuCoin also failed to report suspicious transactions or register with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), according to the Justice Department.
Court documents show that KuCoin, founded in 2017, had over 30 million registered users in 207 countries and territories as of March 2024.
BC Wong, KuCoin’s recently appointed chief executive, stated that the company is focusing on strengthening its compliance practices and obtaining necessary licenses to explore reentry into the U.S. market.
In December 2023, KuCoin agreed to block users in New York and pay $22 million to settle a lawsuit related to unregistered operations.
KuCoin is ranked as the eighth-largest cryptocurrency spot exchange globally, based on metrics such as traffic, liquidity, and trading volumes, according to CoinMarketCap.
