KuCoin, a major crypto exchange, along with its founders Chun Gan and Ke Tang have been charged by U.S. federal prosecutors with violating anti-money laundering (AML) laws.
The charges allege that KuCoin operated as a money transmitting business in the U.S. without proper registration or implementation of AML measures.
Investors King gathered that the indictment disclosed that KuCoin’s actions facilitated the laundering of proceeds from various illicit activities, including sanctions violations and fraud schemes.
Despite its substantial user base, KuCoin purportedly failed to adopt adequate AML and know-your-customer (KYC) protocols until 2023, rendering it vulnerable to exploitation by criminals.
The prosecution’s move underscores the growing regulatory scrutiny faced by cryptocurrency platforms worldwide, as authorities strive to address the sector’s susceptibility to financial crime.
Also, the Commodity Futures Trading Commission (CFTC) filed a separate suit against KuCoin, alleging failure to register as a futures commission merchant and non-compliance with KYC regulations.
Darren McCormack, Special Agent in Charge at Homeland Security Investigations, described KuCoin as “an alleged multibillion-dollar criminal conspiracy,” emphasizing its pivotal role in the crypto market.
Meanwhile, U.S. Attorney Damien Williams condemned KuCoin’s purported attempts to conceal its U.S. user base and its use as a hub for money laundering.
As legal proceedings unfold, KuCoin’s native token (KCS) experienced a 5% decline, signaling investor concerns.
However, Bitcoin (BTC) remained volatile, hovering around $70,000 amidst market turbulence.
