Federal prosecutors in Manhattan have filed charges against KuCoin, one of the leading cryptocurrency exchanges globally, for breaching U.S. anti-money laundering regulations. The exchange is accused of neglecting to properly screen customers, resulting in the transfer of billions of dollars in illicit funds since its inception in 2017.
According to prosecutors, KuCoin, headquartered in Seychelles, actively pursued business from U.S. clients without registering with the Treasury Department and implementing the necessary identity verification procedures mandated by U.S. law.
KuCoin responded on the social media platform X, asserting that customer assets are secure, and its legal team is investigating the allegations. The exchange emphasized its commitment to adhering to compliance standards and respecting the laws of various countries.
Additionally, prosecutors have charged KuCoin’s founders, Chun Gan and Ke Tang, both Chinese nationals, with conspiracy. They are currently evading authorities.
The U.S. Commodity Futures Trading Commission has filed a separate civil lawsuit against KuCoin, alleging failure to register its futures and swaps activities with the regulatory body.
Previously, in December, KuCoin agreed to block users from New York and pay $22 million to settle a lawsuit from the state, which accused it of operating without registration.
KuCoin ranks below Binance, Coinbase, and Kraken in terms of factors like traffic, liquidity, and trading volumes, according to data from CoinMarketCap.
