In a groundbreaking legal move, KuCoin, a prominent cryptocurrency exchange, along with its founders Chun Gan and Ke Tang, has been charged with breaching U.S. Anti-Money Laundering (AML) regulations. The indictment alleges that the exchange operated without proper licensing and failed to comply with necessary AML standards.
KuCoin Accused of Operating Illegally
U.S. Attorney Damian Williams and Acting Special Agent Darren McCormack of Homeland Security Investigations have announced the indictment against the exchange and its founders, accusing them of failing to establish and follow proper AML procedures. The indictment also cites the lack of sufficient customer identity verification and the failure to report suspicious activities.
Simultaneously, the U.S. Commodity Futures Trading Commission has filed a lawsuit against KuCoin, compounding the legal challenges faced by the exchange.
U.S. Attorney Calls Out KuCoin’s Practices
U.S. Attorney Damian Williams has publicly addressed the indictment, stating that KuCoin and its founders attempted to conceal their service to a considerable U.S. customer base. Williams emphasized that while the platform benefited from its American customers to achieve massive trading volumes, it neglected the legal requirement to implement U.S. laws aimed at preventing financial crimes.
Williams further alleged that KuCoin deliberately avoided implementing AML policies, allowing the platform to become a channel for laundering illicit funds, with the exchange handling billions in suspect transactions.
The indictment serves as a stern warning to other crypto exchanges that servicing U.S. clients comes with the obligation to adhere to U.S. regulations.