Kucoin pleads responsible to U.S. AML and KYC violations, faces $297M penalties, a two-year U.S. market exit, and forfeitures tied to darknet crimes.
DOJ Uncovers Billions in Suspicious Transactions Linked to Darknet Actions
Peken International Ltd., the operator of cryptocurrency alternate Kucoin, has pleaded responsible to working an unlicensed cash transmitting enterprise, based on the U.S. Division of Justice (DOJ). The corporate admitted to violating anti-money laundering (AML) and know-your-customer (KYC) rules, facilitating billions in suspicious transactions, together with proceeds linked to darknet markets and malware schemes. As a part of the settlement, Peken pays over $297 million in financial penalties.
Founders Barred From Operations
Two Kucoin founders, Chun Gan and Ke Tang, indicted in March 2024, are barred from the corporate’s administration. The DOJ additionally revealed their settlement to forfeit $2.7 million every. Moreover, they’ll stop operations within the U.S. for no less than two years.
Years of Compliance Failures
The app launched in 2017 however solely carried out a compulsory KYC program in August 2023. This delay left vital compliance gaps, enabling illicit transactions. The DOJ highlighted Kucoin’s position in transmitting billions of {dollars} in doubtlessly prison proceeds.
Kucoin’s Response and Future Plans
In a press release on social media, Kucoin introduced the settlement as a “main step ahead” whereas assuring world customers that its operations in non-restrictive markets stay unaffected. The corporate reiterated its dedication to compliance and innovation.
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