KuCoin Pleads Guilty to Unlicensed Money Transmission, Agrees to $300M Settlement; Founders Enter Deferred Prosecution

Jan 27, 2025, 10:10 PM

KuCoin, a Seychelles-based cryptocurrency exchange, has pleaded guilty to operating an unlicensed money transmitting business in the United States. The company agreed to pay nearly $300 million in fines and forfeitures as part of a settlement with U.S. authorities. The plea was entered by Peken Global Ltd., one of the entities operating as KuCoin, in a Manhattan federal court. The settlement includes a fine of approximately $113 million and forfeitures amounting to $184.5 million. KuCoin's co-founders, Chun Gan and Ke Tang, have entered into deferred prosecution agreements and will each forfeit $2.7 million. As part of the agreement, KuCoin will exit the U.S. market for at least two years, and its founders will no longer have any role in the company's management or operations. Michael Gan, one of the founders, has resigned from all roles at KuCoin as part of the settlement, and the company will focus on global growth under the leadership of CEO BC Wong. KuCoin serves over 38 million users worldwide and plans to explore new blockchain ventures. The charges stem from a March 2024 indictment accusing KuCoin of failing to implement adequate anti-money laundering and know-your-customer programs, and not registering with the U.S. Department of Treasury's Financial Crimes Enforcement Network.