Federal prosecutors based in Manhattan have formally charged KuCoin, a prominent player in the global cryptocurrency exchange realm, with serious breaches of U.S. anti-money laundering statutes.
These charges stem from the exchange’s alleged failure to conduct proper due diligence on its customers, resulting in the facilitation of billions of dollars in illicit transactions since its inception in 2017.
Notably, KuCoin, headquartered in Seychelles, purportedly solicited business from U.S. clientele without registering with the Treasury Department and implementing adequate identity verification protocols mandated by U.S. legislation.
In response to these allegations, KuCoin took to social media platform X to reassure its user base, asserting that customer assets remain secure and that its legal team is actively addressing the accusations.
The exchange emphasized its commitment to compliance with the diverse regulatory frameworks across various jurisdictions, affirming adherence to stringent standards.
Prosecutors have levelled charges of conspiracy against KuCoin’s founders, Chun Gan, aged 34, and Ke Tang, aged 39, both Chinese nationals who are presently evading authorities.
The U.S. Commodity Futures Trading Commission has pursued legal action against KuCoin separately, filing a civil lawsuit alleging failure to register its futures and swaps operations with the regulatory body.
Previously, in December, KuCoin agreed to cease operations for New York residents and settle a lawsuit filed by the state for $22 million, which accused the exchange of operating without proper registration in the state.
Despite these legal challenges, KuCoin remains a significant player in the cryptocurrency exchange landscape, albeit trailing behind industry giants such as Binance, Coinbase, and Kraken in metrics like traffic, liquidity, and trading volumes, according to CoinMarketCap data.
