The US Justice Department recently accused cryptocurrency exchange KuCoin and its two founders of violating the Banking Secrecy Act and conducting unauthorized fund transfers. KuCoin and founders Chun Gan and Ke Tang face charges of conspiracy to operate an unlicensed money transmitting business and violating banking secrecy laws by failing to maintain adequate anti-money laundering procedures. Despite its large user base in the US, KuCoin allegedly failed to comply with US legal requirements.
U.S. Indicts Binance, KuCoin for AML Violations, Unregistered Service to Americans
The charges were brought by the US Southern District of New York's Attorney's Office. They allege that KuCoin, under the leadership of Gan and Tang, intentionally concealed the fact that it served a significant number of US users. Despite becoming one of the world's largest cryptocurrency exchanges, KuCoin allegedly neglected its anti-money laundering obligations, allowing itself to be used for money laundering and terrorist financing. The exchange reportedly received over $5 billion in suspicious and criminal funds and transferred out over $4 billion.
KuCoin Responds to U.S. Charges, Emphasizes User Asset Protection and Compliance Concerns
KuCoin has responded, stating that it is operating normally, with user assets secured, and is investigating the matter with legal assistance. The case underscores the necessity for cryptocurrency exchanges to adhere to legal standards, especially when serving US customers. KuCoin's alleged failure to implement basic anti-money laundering policies has raised concerns about its role in facilitating illicit activities.