According to a report by The Block, the US Department of Justice announced on Tuesday (26th) that it has filed charges against cryptocurrency exchange KuCoin and its two founders, alleging that they violated anti-money laundering laws.
According to the indictment released by the US Attorney’s Office for the Southern District of New York, KuCoin and its two founders, Chun Gan and Ke Tang, are accused of operating an unlicensed money transmission business and violating the Bank Secrecy Act. US prosecutors claim that the exchange failed to maintain proper anti-money laundering programs, failed to establish “reasonable procedures” to verify customer identities, and failed to submit suspicious activity reports.
The indictment states that KuCoin deliberately evaded US anti-money laundering and KYC regulations by falsely claiming that it did not have US customers, when in fact it had a large number of US customers. Authorities claim that KuCoin allowed its platform to be used to launder over $9 billion.
The Department of Justice also stated that the US Commodity Futures Trading Commission (CFTC) filed a parallel civil lawsuit against KuCoin on Tuesday. According to the announcement, KuCoin is accused by the CFTC of operating an illegal digital asset derivatives exchange.
After the news of the indictment came out, KuCoin claimed on its platform X that it operates well and that user assets are secure. It is currently investigating the details through lawyers and states that KuCoin respects the laws and regulations of all countries and strictly adheres to compliance standards.
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