KuCoin Pleads Guilty to Operating Unlicensed Business, Faces $300M Penalty

Seychelles-based cryptocurrency exchange KuCoin admitted in a Manhattan federal court on Monday to operating an unlicensed money-transmitting business. As part of a plea agreement, the company will pay $297.5 million in fines and forfeitures, according to the U.S. Attorney’s Office.

Peken Global Ltd., one of the three entities operating as KuCoin, entered the guilty plea. U.S. District Judge Andrew Carter imposed a $113 million fine and ordered the forfeiture of $184.5 million. The charges originate from a March 2024 indictment against KuCoin and its Chinese founders, Chun Gan and Ke Tang.

Prosecutors alleged that KuCoin ran an unlicensed money-transmitting business and failed to implement a compliant anti-money laundering program. Both Gan and Tang entered deferred prosecution agreements, which will allow them to avoid further legal action provided they meet specific conditions. They will each forfeit $2.7 million as part of the settlement.

Gan announced his resignation from all roles at KuCoin, stating the resolution “dismisses all charges” upon fulfilling the settlement terms. He emphasized that neither he nor Tang intended to violate U.S. laws. KuCoin, now under the leadership of CEO BC Wong, plans to focus on global expansion. Gan expressed optimism for the future, saying he intends to explore new blockchain ventures.

The case against KuCoin follows a December 2023 settlement with New York regulators, where the exchange agreed to pay $22 million in fines and halt operations in the state for failing to register as a securities and commodities broker-dealer.

It is worth noting that KuCoin’s penalty is part of a broader U.S. crackdown on cryptocurrency exchanges. Earlier this month, Seychelles-based exchange BitMEX was ordered to pay $100 million for failing to comply with anti-money laundering laws.