KuCoin Exchange and Founders Charged with Money Laundering
In a recent development, US authorities have leveled accusations against KuCoin, a prominent cryptocurrency exchange, along with its founders Chnu Gan and Ke Tang, alleging violations of anti-money laundering laws.
According to federal prosecutors, KuCoin and its founders are facing charges of operating an unlicensed money transmitting business and failing to adhere to the Bank Secrecy Act by neglecting to maintain an adequate anti-money laundering program.
KuCoin, founded in 2017, boasts a substantial global presence, serving millions of customers and facilitating high-value daily trading activities.
Despite actively seeking business from US customers, KuCoin allegedly failed to implement necessary measures to comply with anti-money laundering regulations. The indictment suggests that KuCoin did not require customers to provide identifying information until July 2023, and even then, the Know Your Customer program was only enforced for new customers.
Additionally, KuCoin purportedly neglected to submit suspicious activity reports, failed to register with regulatory bodies such as the Commodity Futures Trading Commission and the Financial Crimes Enforcement Network, and actively concealed the existence of its US customers to evade regulatory scrutiny.
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Authorities allege that KuCoin’s failure to maintain adequate anti-money laundering protocols enabled the platform to serve as a conduit for laundering illicit funds, including proceeds from darknet markets, malware, ransomware, and fraudulent schemes.
US Attorney Damian Williams emphasized the severity of the allegations, stating that KuCoin’s lack of anti-money laundering measures allowed the platform to operate covertly, facilitating transactions involving billions of dollars in suspicious and criminal funds.
Concurrently, the Commodity Futures Trading Commission has initiated its own legal action against KuCoin, accusing the exchange of operating an unauthorized digital asset derivatives platform.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
