Crypto Exchange KuCoin Violated Anti Money Laundering Laws US Charges the Exchange

The exchange was charged under the Bank Secrecy Act.

US federal prosecutors charged crypto exchange KuCoin and two of its founders with anti money laundering laws violation on Tuesday.

Exchange worked in the U.S lied to one of its investors about working in the U.S. and failed to both register with U.S. government entities and maintain an anti money laundering program.

KuCoin did not register with the US Financial Crimes Enforcement Network as money services business.

The U.S. Department of Justice told indictment that KuCoin and founders ChunGan and Ke Tang operated KuCoin as money transmitting business over 30 million customers did not implement a know your customer or AML program until 2023. Its KYC program did not apply to existing consumers.

Neither Tang nor Gan was arrested.

It did not implement any KYC or AML programs KuCoin made itself available to be used and in fact was used as vehicle for laundering the proceeds of criminal activities and suspicious including proceeds from sanctions, violations, darknet markets, ransomware, maware and fraud schemes. the indictment said.

U.S. Attorney Damien Williams said in statement tha KuCoin actively tried to hide that numbers of US users were trading on its platform.

Homeland Security Investigations Special Agent in Charge Darren McCormack called Kucoin an alleged multibillion dollar criminal conspiracy noting it was one of the mega crypto exchanges.

The Commodity Future Trading Commission also filed a suit against KuCoin Tuesday alleging company which offers both futures and spot trading services did not register as future commission merchant swap execution facility or designated contract market.

It suit charged that KuCoin did not implement the CFTC’s equivalent of KYC program.

 

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