The cryptocurrency platform KuCoin will pay fines totaling $300 million for operating without a license to transmit money. On Jan 27, the U.S. Department of Justice declared the financial settlement after extensive discussions with KuCoin about following federal regulation standards.
Peken Global Limited, the Seychelles-based entity operating as KuCoin, entered its guilty plea in a Manhattan federal court. The settlement includes a forfeiture of $184.5 million and a $113 million fine. In the settlement, KuCoin agreed to shut down its U.S. operations for two years.
According to the terms of the settlement, KuCoin’s co-founders, Michael Gan, and Eric Tang, will forfeit $2.7 million each while permanently separating themselves from managing the platform.
The deal emerged after KuCoin faced charges related to U.S. financial regulation violations. Prosecutors alleged that KuCoin was not registered to FinCEN and that the exchange did not establish sufficient anti-money laundering procedures. The authorities accused KuCoin of failing to report unusual transactions that violated multiple federal laws.
KuCoin leadership changes as BC Wong becomes CEO
The case was heard by U.S. District Judge Andrew Carter in Manhattan, who imposed the penalties on KuCoin. The financial settlement consists of a $113 million fine and a forfeiture of $184.5 million. These measures aim to hold the exchange accountable for its failure to comply with regulatory requirements.
The settlement will trigger modifications in KuCoin’s corporate leadership organization. Joint founder Michael Gan announced on Jan. 28 that the resolution produced a “favorable outcome.” As KuCoin develops its future direction under new leadership, BC Wong, the current chief legal officer, will take over as CEO to build up the exchange’s compliance framework.
KuCoin’s international platform operations outside of the United States continue uninterrupted. Through a recent blog entry, the platform displayed its dedication to developing regulatory alignment and platform safety capabilities. The exchange declares substantial efforts to meet international financial regulatory standards.
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