KuCoin Faces $300 Million Penalty After Pleading Guilty To US Charges

Cryptocurrency exchange KuCoin has pleaded guilty to operating an unlicensed money transmitting business, as reported by Bloomberg.

KuCoin Agrees To Hefty Fines

The plea was made before US District Judge Andrew Carter in Manhattan, who imposed a substantial penalty on KuCoin. The company agreed to pay nearly $300 million in fines and forfeitures, which includes a fine of approximately $113 million and forfeitures totaling $184.5 million.

Bloomberg reports that this resolution addresses a criminal case that follows a series of civil claims that the exchange settled in New York more than a year ago.

In 2023, the exchange faced significant scrutiny from regulators, leading to a settlement that required it to block New York users from its platform.

As part of that agreement, KuCoin also paid $22 million to settle a lawsuit initiated by the state, which accused the platform of failing to register before allowing investors to trade cryptocurrencies.

Founders Seek Relief Through Deferred Prosecution Deals

Adding to the complexity of this case, two of KuCoin’s co-founders have signed deferred prosecution agreements with the US Department of Justice (DOJ).

These agreements typically allow individuals to avoid prosecution by complying with certain conditions set forth by the government, indicating a possible pathway for the founders to mitigate legal repercussions.

This recent event highlights the growing regulatory scrutiny confronting cryptocurrency exchanges in the United States. Nevertheless, with President Donald Trump’s second term, these developments are anticipated to decrease markedly.

The current 47th President of the United States has committed to a more transparent and pro-crypto regulatory environment, intending to create a strategic digital asset reserve.

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