KuCoin Faces $297 Million Penalty for Operating Unlicensed Business

KuCoin, a leading cryptocurrency exchange, pleaded guilty to running an unlicensed money transmitting business, incurring $297 million in penalties. Founders Michael and Eric agreed to deferred prosecution. This marks a shift towards compliance and security for KuCoin, as it plans for future legal re-entry.

In a significant legal development, KuCoin, one of the world's major cryptocurrency exchanges, has admitted guilt to charges of operating an unlicensed money transmitting business. The company consented to imposing fines and forfeitures exceeding $297 million, as declared by the U.S. Department of Justice on Monday.

Following the plea deal, Pecken Global Ltd, functioning as KuCoin, was sanctioned with a $112.9 million criminal fine and $184.5 million forfeiture, committing to exit the U.S. market for at least two years. Founders Chun Gan, known as Michael, and Ke Tang, known as Eric, entered two-year deferred prosecution agreements.

This legal action stems from the alleged inadequacies in KuCoin's anti-money laundering protocols and compliance practices with U.S. financial regulations. Nevertheless, the resolution spotlights a new direction for KuCoin, emphasizing a future aligned with legal compliance and technological innovation.

(With inputs from agencies.)