{"id":39575,"date":"2025-01-28T08:30:59","date_gmt":"2025-01-28T08:30:59","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=39575"},"modified":"2025-01-28T08:30:59","modified_gmt":"2025-01-28T08:30:59","slug":"kucoin-pleads-guilty-to-unlicensed-operations-settles-for-300m-as-founders-resign","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=39575","title":{"rendered":"KuCoin Pleads Guilty To Unlicensed Operations, Settles for $300M As Founders Resign"},"content":{"rendered":"

KuCoin, a prominent cryptocurrency exchange, has pleaded guilty to operating an unlicensed money-transmitting business in the United States. <\/span><\/p>\n

As part of a settlement with US authorities, KuCoin agreed to pay nearly $300 million and <\/span>will<\/span> exit the US market for the next two years. The exchange\u2019s founders, Michael Gan and Eric Tang, have also been forced to resign as part of the deal.<\/span><\/p>\n

The settlement, announced by the Department of Justice (DOJ) on Jan. 27, requires KuCoin to forfeit $184.5 million and pay an additional $112.9 million fine. <\/span><\/p>\n

EXPLORE:\u00a0<\/span>15 New & Upcoming Coinbase Listings to Watch in 2025<\/span><\/a><\/strong><\/p>\n

KuCoin Founders to Forfeit $2.7 <\/span>Million<\/span><\/h2>\n

KuCoin founders Gan and Tang will forfeit $2.7 million and have agreed to step away from all management and operational roles within KuCoin. The company, <\/span>officially<\/span> known as PEKEN Global Limited, entered its guilty plea in a Manhattan federal court.<\/span><\/p>\n

The charges stem from accusations that KuCoin failed to implement effective Anti-Money Laundering (AML) and Know Your Customer (KYC) programs. <\/span><\/p>\n

Prosecutors alleged that until July 2023, the exchange did not require customers to provide identifying information. According to the DOJ, KuCoin employees publicly stated on social media that KYC procedures were not mandatory, even in response to U.S.-based customers.<\/span><\/p>\n

Additionally, KuCoin faced accusations of failing to register with the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Treasury Department responsible for combating financial crimes.<\/span><\/p>\n

In a Jan. 28 blog post, KuCoin assured users that its operations outside the U.S. remain unaffected and highlighted improvements <\/span>made<\/span> to its compliance and security frameworks. The company also announced that its Chief Legal Officer, BC Wong, will assume the <\/span>role of CEO<\/span>.<\/span><\/p>\n

Today marks a significant milestone for KuCoin and the crypto community. I\u2019m proud to share that we\u2019ve reached a settlement with U.S. authorities, providing clarity for our future growth. <\/p>\n

This moment is not just about resolving challenges\u2014it\u2019s about looking ahead with renewed\u2026 pic.twitter.com\/YjVVdVA9s6<\/a><\/p>\n

\u2014 BC Wong (@BC_KuCoin) January 27, 2025<\/a><\/p>\n\n

Michael Gan described the settlement as a \u201cfavorable outcome,\u201d adding that the resolution provides \u201cmuch-needed clarity\u201d for KuCoin\u2019s future. <\/span><\/p>\n

He emphasized that the DOJ dismissed all charges against himself and Eric Tang upon meeting specific conditions, asserting <\/span>there was<\/span> no intent to violate U.S. law or engage in fraudulent activities.<\/span><\/p>\n

EXPLORE:\u00a0<\/span>10 Coins with High Returns: Crypto Forecast 2025<\/span><\/a><\/strong><\/p>\n

Regulatory Scrutiny of Crypto Firms Continue<\/span><\/h2>\n

The case comes amid increasing regulatory scrutiny in the crypto industry. Earlier this month, rival exchange BitMEX was fined $100 million and placed on two years of unsupervised probation for AML violations. <\/span><\/p>\n

U.S. regulators reported in October that they have collected over $19 billion from crypto companies in lawsuit settlements, accounting for nearly two-thirds of all such settlements to date.<\/span><\/p>\n

The SEC has taken a tougher stance against crypto firms in 2024. More specifically, the regulator imposed\u00a0<\/span>nearly $4.7 billion<\/span><\/a>\u00a0in enforcement actions against crypto companies, a 3,018% increase from 2023.<\/span><\/p>\n

More recently, the SEC <\/span>achieved a partial victory<\/span>\u00a0in its legal battle against Kraken as a federal judge in California dismissed one of the crypto\u00a0exchange\u2019s\u00a0central defenses.<\/span><\/p>\n

EXPLORE: <\/span>SEC Partially Wins Case Against Kraken, Judge Dismisses Key Defense On Crypto Regulation<\/span><\/a><\/strong><\/p>\n

The post KuCoin Pleads Guilty To Unlicensed Operations, Settles for $300M As Founders Resign<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

KuCoin, a prominent cryptocurrency exchange, has pleaded guilty to operating an unlicensed money-transmitting business in the United States. As part of a settlement with US authorities, KuCoin agreed to pay nearly $300 million and will exit the US market for the next two years. The exchange\u2019s founders, Michael Gan and Eric Tang, have also been […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-39575","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/39575"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39575"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/39575\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}