tl;dr
Seychelles-based crypto exchange KuCoin pleaded guilty to operating an unlicensed money-transmitting business and agreed to pay nearly $300 million in fines and forfeitures. Peken Global Ltd., one of KuCoin's entities, entered the plea in a Manhattan federal court. The charges stem from an indictmen...
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KuCoin, a Seychelles-based crypto exchange, has pleaded guilty to operating an unlicensed money-transmitting business. As part of the settlement with U.S. authorities, the company has agreed to pay nearly $300 million in fines and forfeitures. This development comes after the co-founders, Chun Gan and Ke Tang, stepped down from their roles at KuCoin.
Peken Global Ltd., a KuCoin entity, entered the plea in a Manhattan federal court, resulting in a $113 million fine and $184.5 million in forfeitures imposed by U.S. District Judge Andrew Carter. The charges stem from an indictment against KuCoin and its founders for running an unlicensed money-transmitting business and failing to implement an anti-money laundering program. Gan and Tang have signed deferred prosecution agreements, each forfeiting $2.7 million.
In a statement, Gan announced his departure from all roles at the company, describing the resolution as favorable and dismissing all charges against him and co-founder Ke Tang. KuCoin will now focus on global growth under CEO BC Wong's leadership, with Tang no longer having any role in KuCoin’s management or operations.
This settlement follows KuCoin’s December 2023 agreement with New York state regulators, involving a $22 million payment in fines and refunds and halting trading in New York due to operating without proper registration as a securities and commodities broker-dealer. Notably, this development is part of a broader trend of U.S. enforcement actions against crypto exchanges, with Seychelles-based BitMEX recently ordered to pay $100 million for failing to comply with U.S. anti-money laundering laws.