KuCoin, one of the largest cryptocurrency exchanges in the world, has been fined nearly $300 million after admitting to running an unlicensed money-transmitting business in the United States.
The company’s legal troubles stem from a 2024 federal indictment that accused it of facilitating billions of dollars in suspicious transactions, including funds from darknet markets, ransomware attacks, and other forms of fraud.
Peken Global Ltd Enters Guilty Plea in US Court
The exchange, operating under the name Peken Global Ltd., appeared before US District Judge Andrew Carter in Manhattan this week, where the company pleaded guilty to operating without the necessary licenses to conduct business in the US.
The court imposed a $113 million criminal fine along with $184.5 million in forfeitures.
This settlement is part of the broader trend of increasing scrutiny on crypto exchanges by the US government, as regulators continue to focus on ensuring compliance with essential regulations, particularly around anti-money laundering.
Alongside the financial penalties, KuCoin’s co-founders, Chun Gan (also known as Michael) and Ke Tang (also known as Eric), both Chinese nationals, have agreed to forfeit $2.7 million each.
Both have signed deferred prosecution agreements, allowing them to avoid further prosecution as long as they meet certain conditions.
As part of the resolution, Gan confirmed he would resign from all roles at the company, calling the outcome a “favourable resolution” that dismissed all charges against him and Tang.
In an official statement, Gan expressed that it was never his intention to violate U.S. law or be involved in any criminal activities.
Tang, also implicated in the charges, will similarly exit KuCoin’s management.
L-R: Michael Chun and Eric Tang
In December 2023, KuCoin reached a settlement with New York state regulators, agreeing to pay $22 million in fines and refunds.
As part of the agreement, the exchange ceased its operations within the state.
The company was accused of failing to register as a securities and commodities broker-dealer and misrepresenting itself as a licensed exchange.
This settlement marked another chapter in KuCoin’s ongoing efforts to resolve its regulatory issues in the US.
KuCoin, based in the Seychelles, had been under investigation for failing to implement effective anti-money laundering and know-your-customer programs, crucial safeguards for preventing financial crimes.
Prosecutors accused the exchange of allowing criminal activities to flourish by not reporting suspicious transactions to the US Department of the Treasury's Financial Crimes Enforcement Network (FinCEN).
Despite these legal setbacks, KuCoin’s newly appointed CEO, BC Wong, is optimistic about the future.
In his X post, Wong said,
“This moment is not just about resolving challenges—it’s about looking ahead with renewed purpose. [...] Your trust and support inspire us to innovate, ensure compliance, and deliver even greater value.”
Through another official statement, he also further stressed that he is focused on improving its global compliance practices and exploring options to return to the market with the proper licenses.
“As CEO, I am focused on enhancing our global presence and fostering collaboration with regulators to create a secure, inclusive financial ecosystem.”
BC Wong is a Singaporean legal expert with a Juris Doctor degree from Singapore Management University and a master's degree from George Washington University.
BC Wong
He previously served as KuCoin’s Chief Legal Officer, where he played a key role in securing regulatory licenses and strengthening relationships with regulators worldwide, particularly in the EU, Asia, the Middle East, and Africa.
The KuCoin case comes on the heels of another high-profile penalty for a crypto exchange.
Earlier this month, BitMEX, also based in the Seychelles, was fined $100 million for failing to comply with US anti-money laundering laws.
Both KuCoin and BitMEX were caught in the broader crackdown on crypto exchanges under the Biden administration, with the industry facing increased scrutiny over the past several years.
KuCoin, which boasts more than 30 million registered users across 207 countries, now faces the challenge of rebuilding its operations under heightened regulatory oversight, with plans for future growth contingent on strict adherence to global compliance standards.
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