Guilty Plea Rocks Crypto Giant

• Crypto exchange KuCoin has reached a settlement with the US Department of Justice to exit the US market for a minimum of two years. 
• The KuCoin founders have also been asked to step down from all roles connected to the company and affiliates. 

In a previous update, we reported that crypto exchange KuCoin has been charged by the Federal prosecutors in Manhattan for violating anti-money laundering laws. According to that post, the crypto exchange was accused of failing to effectively verify customers. As a result, billions of dollars of illicit funds were transferred across the platform.

Shedding more light on this, the court explained that KuCoin facilitated operations from US customers without registering with the Treasury Department. At that time, the exchange clarified that its lawyers were looking into the allegations while assuring customers that their funds were safe, as we previously explored in a news piece.

Latest Update on the KuCoin vs the US Authorities

According to the latest update, KuCoin has reached a settlement with the U.S. Department of Justice (DOJ), marking a significant step towards its plans to strengthen global operations and compliance. Additionally, the company behind the exchange, Peken Global L.T.D, agreed to pay monetary penalties totaling more than $297 million.

The settlement terms also demand that KuCoin exit the US market for at least two years. Meanwhile, the founders Chun Gan (also known as Michael) and Ke Tang (alias Eric) have reached a resolution with the DOJ, leading to the dismissal of all charges leveled against them. However, this would be subject to certain conditions.

Commenting on this, the CEO of the exchange, BC Wong, explained that this outcome marks a new chapter for KuCoin. According to him, this also underscores the exchange’s effort to significantly enhance security, compliance, and innovation.

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. KuCoin remains committed to supporting our global community, delivering innovative solutions, and driving the responsible adoption of cryptocurrency. Together, we will build a stronger, more secure future for all.

KuCoin Founder Comments on the Court Ruling

Speaking on the decision taken by the court, KuCoin Founder Michael highlighted that the constructive approach to the resolution signifies his lack of intent to violate the laws involving money laundering, fraud, etc. According to him, this decision provides the necessary clarity for future navigations within the industry.

Disclosing some of the terms of the settlement, Michael hinted that he was asked to step down from all roles connected to the company and its affiliates. In his statement, he assured the community that BC Wong and the exceptional team would solidify the exchange’s position as a trusted leader in the industry. As reviewed in our recent article, Wong has pledged to build a reliable platform for users.

In an official statement released by the exchange, KuCoin also highlighted some of its achievements in the past two years, including enhancing compliance and security. According to the report, the exchange would continue to constructively engage with authorities for the highest standard of governance and responsibilities.

We extend our heartfelt gratitude to our loyal customers for standing by us through challenging times. Your trust inspires us to innovate, improve, and build a platform that empowers your financial goals. Guided by our core values—Integrity, Innovation, User-First, and Security—we remain dedicated to providing secure, cutting-edge services that benefit users globally.