OKX Settles DOJ Charges With $505M Payment After Pleading Guilty

• OKX exchange pleaded guilty for operating an unlicensed money-transmitting business. 
• The exchange agreed to pay $505 million worth of fines. 

One of the top crypto exchanges, OKX made it to the headlines today for operating an unlicensed business. It agreed to pay around $505 million worth of fines for violating US anti-money laundering rules. Most of these violations occurred from 2018 to 2024. 

As per the recent report published by the OKX, its operator Aux Cayes Fintech resolved the DoJ investigation. The Aux Cayes FinTech Co. Ltd. acknowledged the fact that it didn’t have a license to operate as a money transmitter. It further stated, 

“The company acknowledged that, as a result of legacy compliance gaps, certain US customers had in the past traded on the company’s global platform.”

US Attorney Slammed OKX Affiliate Despite the Settlement

The OKX crypto exchange mentioned that there were no allegations of customer harm and charges on any employee. However, US Attorney Matthew Podolsky accused that the exchange deliberately violated anti-money laundering laws. On another note, FBI Assistant Director in Charge James E. Dennehy said that OKX even advised customers to provide false information. 

The exchange also posted on its official X account intimating they had resolved the DoJ investigation. They had a small percentage of customers who used their international services due to historical compliance gaps. Furthermore, the OKX exchange also highlighted that their compliance controls are among the leading in the industry.

In one of his posts, OKX’s CEO Star Xu stated, 

“Our vision is to make OKX the gold standard of global compliance at scale across different markets and their respective regulatory bodies.”

Nonetheless, the present incident sets a precedent to other crypto exchanges in the country. It underlines the importance of exchanges being in compliance with the KYC and AML rules and regulations. 

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