Federal prosecutors in Manhattan on Tuesday, brought charges against KuCoin, a leading global cryptocurrency exchange, alleging violations of U.S. anti-money laundering laws.
Since its establishment in 2017, KuCoin purportedly failed to adequately screen customers, facilitating the transfer of billions of dollars in illicit funds.
According to prosecutors, the Seychelles-based exchange actively sought business from U.S. clients without registering with the Treasury Department or implementing identity verification procedures mandated by U.S. legislation.
Responding to the allegations, KuCoin assured its users via a post on the social media platform X that customer assets remain secure, with legal counsel actively addressing the accusations.
Emphasizing its commitment to compliance, KuCoin stated that it respects the laws and regulations of various jurisdictions.
Additionally, prosecutors charged the exchange’s founders, Chinese nationals Chun Gan, 34, and Ke Tang, 39, with conspiracy. As of now, they remain at large, according to official statements.
In a separate action, the U.S. Commodity Futures Trading Commission filed a civil lawsuit against KuCoin, alleging failure to register its futures and swaps activities with the regulatory body.
KuCoin had previously agreed, in December, to block access for users from New York and pay a $22 million settlement to resolve a lawsuit filed by the state, which accused the exchange of failing to register within its jurisdiction.
Despite these legal challenges, KuCoin continues to operate, albeit under increased scrutiny. As per CoinMarketCap data, KuCoin ranks behind Binance, Coinbase, and Kraken in terms of cryptocurrency spot exchanges, based on metrics such as traffic, liquidity, and trading volumes.
