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News

Kucoin Exchange Pays $300 Million Fine for Not Having a License

2 mins mins
Kucoin Exchange Pays $300 Million Fine for Not Having a License

Key Points:

  • KuCoin exchange pleaded guilty to operating an unlicensed money-transmitting business, agreeing to pay a $300 million settlement.
  • The exchange’s founders, Michael Gan and Eric Tang, will forfeit $2.7 million and step down from their management roles as part of the settlement.

KuCoin exchange has admitted guilty to operating an unlicensed money-transmitting business and will pay nearly $300 million settled to charges with U.S. authorities.

Read more: KuCoin Delists Polyhedra’s Token Amid Battle For ‘ZK’ Token Symbol  

KuCoin Exchange Settles with U.S. Authorities for $300 Million Over Unlicensed Operations

The settlement, announced on January 27, 2025, includes a forfeiture of $184.5 million and a $112.9 million fine. KuCoin, operated by PEKEN Global Limited, also agreed to exit the U.S. market for at least two years.

The legal action stems from allegations that KuCoin exchange and its founders, Michael Gan and Eric Tang, violated the U.S. Bank Secrecy Act by failing to implement necessary Know Your Customer (KYC) and Anti-Money Laundering (AML) measures.

The Department of Justice and the Commodity Futures Trading Commission (CFTC) accuse the exchange of aiding in the laundering of up to $9 billion, drawing serious regulatory scrutiny.

Legal Violations Lead to U.S. Market Ban and Legal Challenges

As part of the settlement, the exchange’s founders will forfeit $2.7 million and will no longer hold any management or operational roles at KuCoin. The decision to plead guilty was made during a court hearing in Manhattan federal court, effectively concluding the investigation into the exchange’s practices.

Previously, the KuCoin exchange faced other legal challenges in 2023. In New York, the exchange was fined $22 million for operating without a proper license and listing certain cryptocurrencies considered as securities.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Avatar of John Kojo Kumi

John Kojo Kumi

28 January 2025, 02:36:00 GMT +0000

John Kojo Kumi is a cryptocurrency researcher and writer specializing in emerging startups, tokenomics, and market dynamics within the blockchain ecosystem. With years of experience in crypto journalism and blockchain research, he provides in-depth coverage of decentralized finance (DeFi), NFTs, and Web3 innovations.

He holds a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi, bringing a multidisciplinary perspective to the evolving digital asset space. As a Crypto News Writer, he tracks and reports on industry trends, while his role as a Registrar at the Commission on Human Rights and Administrative Justice reflects his commitment to governance and transparency.

His expertise spans content strategy, SEO optimization, and technical research, enabling him to craft insightful, data-driven analyses. Passionate about blockchain’s transformative potential, he strives to equip readers with the knowledge to navigate the complexities of digital assets and decentralized technologies.

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