KuCoin exits US market, pays $300M fine for unlicensed operations
KuCoin pleaded guilty to operating an unlicensed money-transmitting business, agreeing to exit the U.S. market for two years and pay nearly $300 million in penalties. The exchange failed to register with the Financial Crimes Enforcement Network and did not maintain anti-money-laundering safeguards. KuCoin served about 1.5 million U.S. users and facilitated billions in suspicious transactions. Founders Chun Gan and Ke Tang were indicted and will not manage the exchange during the two-year period. KuCoin did not require user identification until August 2023 and had previously described know-your-customer checks as optional. The plea deal includes forfeiting $184.5 million and a criminal fine of approximately $112.9 million. KuCoin's KCS token rose 13.7% following the news, indicating investor relief. The resolution serves as a warning for businesses neglecting U.S. financial regulations.
