Crypto Exchange KuCoin to Exit US Amid Resolution of Lawsuit

Cryptocurrency exchange KuCoin will exit the U.S. market for at least two years after its operator, Seychelles-based Peken Global Limited, pleaded guilty Monday (Jan. 27) to one count of operating an unlicensed money transmitting business.

Peken will also pay monetary penalties totaling more than $297 million, while two of its founders, Chun (Michael) Gan and Ke (Eric) Tang, will step down from any role in KuCoin’s management or operations, the United States Attorney for the Southern District of New York, said in a Monday press release.

U.S. Attorney Danielle R. Sassoon said in the release that KuCoin avoided implementing required anti-money laundering (AML) policies for years.

“As a result, KuCoin was used to facilitate billions of dollars’ worth of suspicious transactions and to transmit potentially criminal proceeds, including proceeds from darknet markets and malware, ransomware and fraud schemes,” Sassoon said. “Today’s guilty plea and penalties show the cost of refusing to follow these laws and allowing unlawful activity to continue.”

In a statement posted Monday, KuCoin said that it is pleased to have reached a resolution in the case and that it has made significant progress in strengthening its compliance framework and platform security over the past two years.

“These initiatives include expanding our compliance team, acquiring licenses in key markets, and adopting rigorous security standards to safeguard user assets and enhance platform resilience,” the statement said.

KuCoin’s operations in other markets remain unaffected by the regulatory challenges in the U.S., and the company actively engages with regulators worldwide to operate in a compliant manner, according to the statement.

“As regulations evolve, KuCoin remains committed to constructive engagement with authorities to uphold the highest standards of governance and responsibility, ensuring we stay ahead in the dynamic cryptocurrency industry,” the statement said.

KuCoin will move forward under the leadership of newly appointed CEO BC Wong, who played a key role in shaping the company’s compliance framework in his previous role of chief legal officer, the company said in a press release.

“While we are exiting the U.S. for the present, we are focusing on strengthening our global compliance practices and exploring opportunities to reenter the market with the necessary licenses,” Wong said in the release.

The KuCoin case was part of former President Joe Biden’s crackdown on crypto exchanges and is one of the last of those cases to be resolved, Bloomberg reported Monday.

Now that President Donald Trump is in the White House, the crypto industry is seeing his first actions after he campaigned as America’s “first crypto president,” PYMNTS reported Monday.

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