Emily Walker
KuCoin, a cryptocurrency exchange, has admitted to running an unauthorized money transmitting operation, according to a Bloomberg report.
Significant Financial Penalties Imposed
During a court hearing led by US District Judge Andrew Carter in Manhattan, KuCoin was handed a hefty penalty. The exchange consented to pay almost $300 million, which encompasses a fine of around $113 million and forfeitures amounting to $184.5 million.
This agreement resolves a criminal case that emerged after KuCoin dealt with several civil claims in New York over a year ago.
In 2023, the platform came under intense scrutiny from regulators, resulting in it barring New York residents from using its services.
Additionally, KuCoin settled a lawsuit from the state for $22 million, which accused the exchange of failing to register prior to allowing users to trade in cryptocurrencies.
Co-Founders Explore Deferred Prosecution Options
In a further twist to the situation, two of KuCoin’s co-founders have entered into deferred prosecution agreements with the US Department of Justice (DOJ).
Such agreements often enable individuals to evade prosecution by meeting specific governmental conditions, potentially providing a route for the founders to lessen their legal challenges.
This incident sheds light on the increasing regulatory challenges faced by cryptocurrency exchanges in the United States. However, with President Donald Trump anticipated to have a second term, these regulatory pressures are expected to ease considerably.
The newly elected 47th President has pledged to establish a more open and crypto-friendly regulatory framework, aiming to develop a strategic digital asset reserve.
As of now, the exchange’s own token, KCS, has seen a decline of 4%, with its current trading value at $12.80.
Image courtesy of DALL-E, with data sourced from TradingView.com