A major crypto exchange, KuCoin has pleaded guilty to operating an unlicensed money transmitting business in the US. As part of a settlement with the U.S Department of Justice, the exchange agree to pay nearly $300 million in fines and forfeitures. This includes a criminal fine of approximately $112.9 million and a forfeiture of $184.5 million.
As part of the agreement, KuCoin will exit the United States Market for at least two years.
Throughout the two-year period, the exchange will not be run by its founders, Chun Gan (Michael) and Ke Tang (Eric). Additionally, as part of a deferred prosecution agreement, they each agreed to surrender $2.7 million.
The exchange faced criticism for failing to implement adequate anti-money laundering (AML) and know-your-customer (KYC) measures. Until August 2023, users were not required to provide identifying information, and KYC checks were described as optional.
In spite of the significant penalties, KCS token of KuCoin saw a surge of 13.7% following the announcement, signaling investor relief and renewed confidence in the future compliance efforts of the exchange.
KuCoin's newly appointed CEO, BC Wong, highlighted the exchange's commitment to innovation while ensuring regulatory adherence.
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