KuCoin Pleads Guilty to $4B Illegal Transactions, Co-Founders Step Down

Crypto exchange KuCoin has admitted guilt in a US legal case, where it was accused of operating as an unlicensed money transmitter. This case, filed by the Department of Justice (DOJ) in March 2024, also involves the platform’s co-founders, Chun Gan, and Ke Tang, who are stepping down from their roles as part of the settlement.

The rising KYC and money laundering cases by the crypto exchanges are hampering the faith of crypto investors. Right now all eyes are on the first crypto order which can change the crypto rules and give a safe trading platform for crypto investors. Trump is working to bring crypto assets into daily use to make it more accessible but before that, the firms should follow the guidelines to safeguard their crypto investors. 

What Was KuCoin Accused Of?

As per the latest update from Samuel Rubenfeld, a Senior Reporter with MLExclusive, KuCoin’s operator, Peken Global Ltd, has agreed to a $300 million settlement with U.S. authorities. This includes $113 million in fines, $184.5 million in civil forfeitures, and $22 million in additional fines and refunds. As part of the deal with DOJ, KuCoin will stop operating in New York, and its co-founders, Chun Gan, and Ke Tang, will step down, each forfeiting $2.7 million. Gan has already announced his departure, calling the settlement a fair resolution.  As part of the agreement, KuCoin will stop operating in New York.

The DOJ accused KuCoin of processing up to $4 billion in transactions tied to illegal activities. The platform was also criticized for failing to follow basic rules like Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations, which are designed to prevent financial crimes.

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Why Does This Matter?

This case is part of a larger trend of US regulators cracking down on crypto companies that break the law. Other platforms, like BitMEX and Robinhood, have faced similar actions, resulting in hefty fines and leadership changes.

Under President Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President administration, the US is taking a tougher stance on crypto regulation. While the government wants to create clear rules for the industry, it is also showing little tolerance for companies that fail to comply with existing laws.

What’s Next?

The US is ramping up its regulatory efforts with the help of a new crypto task force, led by Hester Peirce, and other government agencies like the DOJ and SEC. These groups aim to create a safer and more transparent crypto market while cracking down on bad actors.

For KuCoin, this settlement closes a major chapter, but it also serves as a warning to other crypto companies about the importance of following the rules.

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