KuCoin Faces Legal Challenges Over Anti-Money Laundering Violations

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Federal prosecutors in Manhattan have brought charges against KuCoin. The exchange, one of the largest in the global cryptocurrency market, is accused of contravening U.S. anti-money laundering regulations.

Charges by Federal Prosecutors

On Tuesday, authorities charged KuCoin for its alleged failure to adhere to U.S. anti-money laundering laws. Since its establishment in 2017, the exchange is accused of enabling the transfer of billions of dollars in illicit funds without conducting necessary customer background checks. This lapse has led to significant legal repercussions for the company and its founders. Chun Gan and Ke Tang the Chinese nationals who co-founded KuCoin, have been specifically charged with conspiracy. According to federal prosecutors, both individuals are currently not in custody and are considered to be at large.

Additional Legal Challenges

Apart from the charges by federal prosecutors, KuCoin is also facing a civil lawsuit from the U.S. Commodity Futures Trading Commission (CFTC). The lawsuit alleges that the exchange failed to register its futures, and swaps activities with the regulatory body. A requirement for operating such services in the United States. KuCoin had previously agreed to a settlement with New York authorities. In December, the exchange consented to block users from New York from accessing its platform and to pay $22 million. This settlement was the outcome of a lawsuit accusing KuCoin of operating without proper registration in the state.

The U.S. government is determined to enforce anti-money laundering laws and ensure the compliance of cryptocurrency entities with regulatory standards. As the legal proceedings unfold, we’ll be monitoring this story closely and the implications for KuCoin as it unfolds.