OKX Pleads Guilty to Violating U.S. Laws as DOJ imposes $505M Penalty

OKX Admits to Illegal Transactions Worth Over $1 Trillion

The operator of cryptocurrency exchange OKX has pleaded guilty to operating an unlicensed money-transmitting business, leading to nearly $505 million in penalties.

The U.S. Department of Justice (DOJ) announced the guilty plea in a Manhattan federal court, where Aux Cayes FinTech Co. Ltd, a Seychelles-based entity, admitted to facilitating unlawful transactions for U.S. customers over several years.

Massive Transactions Without Proper Licensing

Despite officially prohibiting U.S. users from trading on its platform since 2017, OKX’s operator allowed transactions exceeding $1 trillion, generating substantial revenue from fees and commissions.

Prosecutors revealed that the company processed over $5 billion in suspicious transactions and criminal proceeds between 2018 and early 2024.

U.S. authorities stated that OKX not only permitted these transactions but, in some cases, actively encouraged users to bypass restrictions.

According to court documents, an OKX employee advised a customer to list their location as the United Arab Emirates and use random identification numbers to avoid detection.

Penalties and Compliance Measures Imposed

U.S. District Judge Katherine Polk Failla approved the penalties, which include an $84.4 million fine and a $420.3 million forfeiture.

As part of the agreement, OKX must retain an external compliance consultant until February 2027 to oversee regulatory adherence.

Acting U.S. Attorney Matthew Podolsky condemned the violations, stating,

“Today’s guilty plea and penalties emphasise that there will be consequences for financial institutions that avail themselves of U.S. markets but violate the law by allowing criminal activity to continue.”

OKX Acknowledges "Compliance Gaps"

In a statement on 24 February 2025, OKX admitted that some U.S. customers had accessed its global platform due to compliance lapses.

However, the exchange emphasised that these users represented only a small fraction of its overall customer base and that no U.S. clients remain on the platform today.

OKX also stressed that no harm to customers had been alleged and that no individual employees faced charges.

FBI Says OKX Advised Customers to Provide False Information

FBI Assistant Director in Charge James E. Dennehy criticised the company’s conduct, noting that it “advised individuals to provide false information to circumvent requisite procedures.”

He warned that such actions would not go unpunished, stating,

“Blatant disregard for the rule of law will not be tolerated.”

OKX’s Standing in the Crypto Market

According to CoinMarketCap, OKX is currently ranked as the world’s fourth-largest cryptocurrency spot exchange, trailing behind Binance, Bybit, and Coinbase.

Despite the legal challenges, the platform remains a key player in the industry, supporting spot trading for over 300 cryptocurrencies, including Bitcoin and Ethereum.

The exchange had also engaged in U.S. marketing efforts, such as sponsoring the Tribeca Film Festival in Manhattan, further complicating its claims of distancing itself from the American market.