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Investing.com -- KuCoin, a major player in the global cryptocurrency exchange, admitted guilt on Monday for running an unlicensed money transmitting business.
The U.S. Department of Justice announced that the company agreed to pay over $297 million in fines and forfeitures. The plea deal includes a $112.9 million criminal fine and a $184.5 million forfeiture. As part of the agreement, KuCoin will exit the U.S. market for a minimum of two years.
KuCoin founders Chun Gan, also known as Michael, and Ke Tang, known as Eric, have each agreed to enter two-year deferred prosecution agreements.
They will forfeit $2.7 million and relinquish any managerial or operational roles in KuCoin, as per the Justice Department's announcement.
The Department of Justice claims that the Seychelles-based KuCoin was utilized to facilitate billions of dollars in suspicious transactions. These transactions potentially included criminal proceeds from darknet markets, malware, ransomware, and fraud.
The prosecutors also noted that KuCoin failed to report suspicious transactions or register with the U.S. Department of the Treasury's Financial Crimes Enforcement Network, or FinCEN.
KuCoin, established in 2017, had over 30 million registered users in at least 207 countries and territories as of March 2024, according to court documents.
In a statement on the matter, KuCoin's CEO BC Wong said, “This resolution signifies a new chapter for KuCoin, one that reaffirms our dedication to compliance, security, and innovation. While we are exiting the U.S. for the present, we are focusing on strengthening our global compliance practices and exploring opportunities to reenter the market with the necessary licenses."
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