US federal prosecutors have charged KuCoin, one of the world's largest cryptocurrency exchanges and two of its founders, for violating anti-money laundering laws.
The charges allege that KuCoin operated in the US without registering with government entities or implementing anti-money laundering programs until 2023.
KuCoin Allegedly Moved Billions in Illicit Funds
According to CoinDesk, court documents suggest KuCoin allegedly received over $3.2 million worth of cryptocurrency from Tornado Cash, a sanctioned crypto mixer, and failed to establish controls to prevent illicit activity on its platform. The exchange is accused of receiving more than $5 billion and sending over $4 billion of suspicious and criminal funds.
In response to the allegations, KuCoin stated that it is investigating the details through its lawyers and affirmed its commitment to complying with laws and regulations.
The Commodity Futures Trading Commission also filed a separate case against KuCoin, alleging failure to register and implement proper Know Your Customer (KYC) programs. The prosecutors alleged that the company concealed the usage of many American customers to evade US regulations.
The charges come amid increased regulatory scrutiny of the cryptocurrency industry. Similar charges were settled just months ago against Binance, the world's largest crypto exchange by trading volume.
KuCoin's Value Dropped
Following the announcement, KuCoin's native token (KCS) dropped by 5%, while Bitcoin's (BTC) price experienced volatility throughout the day.
KuCoin is recognized as one of the largest spot crypto exchanges globally, with a daily trading volume of over $2 billion, according to CoinMarketCap.
Join the Conversation