KuCoin, one of the top 10 largest cryptocurrency exchanges globally, has reached another settlement with US regulatory authorities after settling a $22 million case with the New York State Department of Justice in 2023 over allegations of providing unregistered securities services.
According to the announcement from the US Department of Justice, KuCoin has admitted to operating an unlicensed money transmission business in the US and agreed to pay nearly $300 million in penalties and related forfeiture fees.
KuCoin Pleads Guilty, Agrees to Exit US Market for at Least Two Years
In March last year, the US Department of Justice charged KuCoin and its two Chinese founders, Chun Gan (also known as Michael) and Ke Tang (also known as Eric), with operating an unlicensed money transmission business and failing to comply with US anti-money laundering regulations.
On the 27th, Peken Global Ltd. (one of KuCoin's three operating entities), located in Seychelles, pleaded guilty before US District Judge Andrew Carter in Manhattan. According to the ruling, the company was fined approximately $113 million and ordered to forfeit $184.5 million.
Additionally, the two founders have signed deferred prosecution agreements and agreed to forfeit approximately $2.7 million each, while also agreeing to not participate in any management or operational roles.
As part of the settlement agreement, KuCoin has agreed to exit the US market for at least two years. The exchange emphasized that this will not affect its operations in other non-restricted global markets.
"While resolving the regulatory challenges in the US, we want to assure our global users that KuCoin's operations in other markets remain unaffected. We will continue to provide secure and innovative services to our global users, striving to become the leading cryptocurrency exchange."
Statement from Founder Michael
According to a statement from KuCoin founder Michael, the US Department of Justice has agreed to drop all charges against him and co-founder Eric Tang, provided certain conditions are met.
As part of the settlement agreement, Michael has announced his resignation from all positions at KuCoin and its affiliated companies. In the statement, he expressed gratitude for the long-term trust and support of the KuCoin community and expressed confidence in the management team led by BC Wong.
Looking ahead, Michael stated that he looks forward to continuing to drive the ongoing development of the cryptocurrency industry through new business and partnership opportunities.
KCS Surges Over 14% in the Past 24 Hours
Possibly due to the resolution of regulatory uncertainties, KuCoin's platform token KCS has surged in the past 24 hours, rising from around $12.22 last night to $14.57, a gain of over 14.4%.
