KuCoin Exchange Agrees to Pay $300 Million Fine to the US

KuCoin Exchange has been accused by the US of aiding and abetting money laundering through crypto by failing to implement KYC and AML measures.

According to Bloomberg, the cryptocurrency exchange KuCoin has agreed to plead guilty to the US government, agreeing to pay a fine of up to $300 million.

KuCoin pleads guilty to unlicensed money transmission charge and agrees to pay penalties totaling nearly $300 millionhttps://t.co/0Unaqbvro6

— US Attorney SDNY (@SDNYnews) January 27, 2025

KuCoin and its two founders Chun Gan (Michael) and Ke Tang (Eric) were accused in March 2024 by the US Department of Justice and the Commodity Futures Trading Commission (CFTC) of aiding in the laundering of up to $9 billion in dirty money by failing to enforce Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements, thereby violating the US Bank Secrecy Act.

In a trial held on January 27, 2025 (US time), KuCoin representatives decided to plead guilty to end the investigation, agreeing to pay the fine imposed by the prosecutor of $300 million. The two founders will have to pay an additional $2.7 million in personal fines.

In addition, the exchange is also banned from doing business in the US for at least two years. However, a KuCoin spokesperson has pledged to maintain its services and commitments to global customers, affirming its position as one of the world's leading cryptocurrency trading platforms.

KuCoin also ran into legal trouble in New York state in 2023, resulting in the exchange having to pay a $22 million fine for operating without a license and listing cryptocurrencies that were considered securities.

KuCoin's KCS token price is up 11% on news that the exchange has ended its lawsuit with the US government.