KuCoin Fined $300M for Operating Unlicensed Crypto Exchange in US

Cryptocurrency exchange KuCoin has agreed to pay nearly $300 million in fines and forfeitures after pleading guilty to operating an unlicensed money transmitting business in the United States. The plea deal, entered by one of KuCoin's operating entities, Peken Global Ltd., resolves a criminal case and follows a similar civil settlement with New York authorities over a year ago.

Guilty Plea and Hefty Penalties: KuCoin's Legal Troubles

The plea was entered on Monday before U.S. District Judge Andrew Carter in Manhattan as part of an agreement with federal prosecutors. The judge imposed a fine of approximately $113 million and forfeitures of $184.5 million.

KuCoin, along with two of its founders, Chun Gan and Ke Tang, both Chinese nationals, were initially indicted in March 2024 on charges of conspiring to operate an unlicensed money transmitting business and failing to implement an anti-money laundering program. As part of the agreement, Gan and Tang signed deferred prosecution agreements and will each forfeit about $2.7 million.

Deja Vu: Another Settlement with New York Authorities

This resolution comes after KuCoin settled similar claims with the New York Attorney General in December 2023. In that case, KuCoin agreed to pay $22 million in fines and refunds and cease operations in New York after being accused of failing to register as a securities and commodities broker-dealer and falsely representing itself as an exchange.

Echoes of BitMEX: A Crackdown on Early Crypto Exchanges

The KuCoin case, along with a similar case against the crypto exchange BitMEX, represents one of the final enforcement actions taken by the U.S. Justice Department under the previous administration's crackdown on crypto exchanges. BitMEX, another pioneering crypto exchange, was ordered earlier this month to pay a $100 million fine for violating U.S. anti-money laundering laws.