Exec steps down over $297M fines

On January 28, Kucoin pleaded guilty to a judge in the United States for omitting to implement anti-whiteness protocols and having to pay $ 297 million in fines.

The exchange of cryptocurrency based in China Kucoin Stole American regulations on money laundering and knowledge procedures for your customer and admitted guilt to a single accusation of “managing a business transmission company without license”. According to the official declaration From the American prosecutor’s office, the entity operating like Kucoin, Peken Global Limited, will have to withdraw from the American market for at least two years and pay a fine of $ 297 million.

Danielle Sassoon, the American lawyer For the South New York District, said Kucoin had avoided the implementation of standard money laundering policies that would identify criminal actors and prevent illegal transactions for years.

The company has treated billions of dollars in suspicious transactions and has transmitted potentially poorly acquired gains, including those in the Darknet markets, malware, ransomware and fraud patterns. “Today’s advocacy and guilt penalties show the cost of refusing to follow these laws and allow illegal activities to continue,” said Sassoon.

Cointelegraph reported On March 26, 2024, that Kucoin received more than $ 5 billion and transmitted more than $ 4 billion in what the US government considers “suspicious and criminal funds”. Until July 2024, Kucoin does not need Kyc of their customers, going against American compliance measures.

In addition, Kucoin did not register with the network of financial crimes of the US Treasury department, the press release said. Registration with Fincen provides a framework for cryptographic companies to comply with federal laws and helps reduce risks for consumers and the wider financial system.

Now, the founders of Kucoin, Chun Gan and Ke Tang, have resigned. Chun Gan, who relies on the nickname of Michael, announced that he was leaving his CEO of the Crypto Exchange “within the framework of the agreement”. He also mentioned in a blog that he would now pass the stick to BC Wong.