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Prominent Global Cryptocurrency Exchange KuCoin and Founders Facing Charges
The crypto exchange KuCoin and two of its founders have been charged by US authorities for operating as an illegal exchange in the USA and failing to implement anti-money laundering protocols.
Charges and Allegations
- The Department of Justice (DoJ) charged KuCoin and founders Chun Gan and Ke Tang with violating the Bank Secrecy Act and operating as an unlicensed money transmitter business.
- KuCoin allegedly did not implement any know-your-customer (KYC) or anti-money laundering controls until 2023, allowing over $9 billion in suspicious transactions.
Legal Actions and Consequences
The Commodity Futures and Trade Commission (CFTC) also charged KuCoin with violations of the Commodity Exchange Act. The CFTC seeks fines and trading bans, while the DoJ aims for forfeiture and criminal penalties.
US Attorney’s Statement
US Attorney Damien Williams highlighted that KuCoin facilitated illicit money laundering with over $5 billion received and $4 billion sent in suspicious and criminal funds.
Regulatory Authority and Market Impact
The CFTC’s actions against KuCoin come after similar charges against Binance. The news had a short-lived impact on Ether’s price, which dipped but recovered due to market rally and BlackRock’s asset tokenization initiative.
Conclusion
In conclusion, the charges against KuCoin and its founders underscore the importance of regulatory compliance in the cryptocurrency industry.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
