Kucoin acknowledges that he is guilty in the process of transferring unlicensed money, and faces a penalty of $ 300 million

The Sycheyl-Kokoin-based encryption has admitted that it is guilty of doing unlicensed works to take money. According to the agreement, Kucoin faces cash penalties for more than $ 297 million, which includes confiscation of $ 184.5 million and a fine of $ 112.9 million.

Kucoin will also suspend US market activities for two years. Founders Michael Gan and Eric Tang will abandon $ 2.7 million and withdraw completely from the company’s leadership under the conditions of the deferred prosecution agreement.

Kucoin’s AML and Kyc Lapses

court Documents It revealed that Kucoin was established in about September 2017 and grew to become one of the largest coded currency exchanges in the world, serving more than 30 million customers with billions of daily trading volume. From its inception until March 2024, Cocoin has served about 1.5 million American users and received at least $ 184.5 million as fees.

As money sending, Kucoin had to follow the banking confidentiality law, which requires maintaining a sufficient anti -money laundering program (AML) and performing the factors recognition (KYC).

Despite its obligations and presence in the large United States, the Ministry of Justice said that Cocoin has failed to create a suitable KYC program. Until July 2023, the platform did not ask users to provide identification information, and Kucoin employees are publicly clarified on social media that KYC was optional, even responding to customer jobs in the United States.

In August 2023, Kucoin Kyc provided mandatory for new customers and current users who actively wanted to use services. However, the statute did not impose these requirements on current users who only sought to withdraw or close situations, which were compliance requirements.

In addition, the Ministry of Justice added that Kucoin failed to register for Fincen as the money transfer company and did not submit any compulsory suspicious activity reports.

Commenting on the development, American lawyer Daniel R. said. Sasson,

“For years, Kucoin avoided implementing the anti -money laundering policies designed to identify criminal actors and prevent illegal transactions. As a result, Kucoin was used to facilitate billions of dollars in suspicious transactions and transfer potential criminal returns, including Markets, Malware, Ransomware and Sugray. “

Cocoine statement

Despite the organizational challenges in the United States, Cocoin confirmed that its operations in other unrestricted markets are still uncompromising.

At the same time, in a statement to CryptopotatoGan described the settlement as a “favorable result” and announced that the chief legal official of Cocoin, BC and Wong, would take over the role of the CEO.

He also stated that the Ministry of Justice dropped all the charges against himself and Tang after meeting certain conditions and stated that the last decision brought clarity to the exchange of encryption.