The U.S. Attorney’s Office for the Southern District of New York, in conjunction with Homeland Security Investigations (HSI), has announced the unsealing of an indictment against global cryptocurrency exchange KuCoin and two of its founders, Chun Gan (also known as “Michael”) and Ke Tang (also known as “Eric”), for serious violations of U.S. financial regulations.
As per the press release issued on 26 March, the charges against the individuals and the entity include operating an unlicensed money-transmitting business and failing to comply with the Bank Secrecy Act, particularly in maintaining an adequate anti-money laundering (AML) program.
U.S. Attorney Damian Williams highlighted the deliberate actions by KuCoin and its founders to conceal the involvement of U.S. users on their platform, leveraging this substantial customer base to grow into one of the world’s largest crypto exchanges. The absence of basic anti-money laundering policies, according to the press release, facilitated KuCoin’s emergence as a channel for illicit money laundering, involving over $9 billion of suspicious and criminal funds.
The press release further detailed KuCoin’s operational practices, highlighting the company’s apparent disregard for its obligations under U.S. law. According to the release, despite being aware of these legal requirements, KuCoin, along with individuals Gan and Tang, chose to ignore them. The press release criticized KuCoin for not implementing an adequate Know Your Customer (KYC) program until July 2023, failing to file any suspicious activity reports, and not registering with the necessary U.S. regulatory authorities.
U.S. Attorney Damian Williams said: “Today’s Indictment should send a clear message to other crypto exchanges: if you plan to serve U.S. customers, you must follow U.S. law, plain and simple.”
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- Source: https://www.cryptocompare.com/email-updates/daily/2024/mar/27/
