According to a report by The Block, the US Department of Justice announced on Tuesday (26th) that it has filed charges against the 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. The US prosecutors claim that the exchange failed to maintain adequate 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 know-your-customer regulations by falsely claiming that it did not have US customers, while in reality, KuCoin had a large number of US customers. Authorities allege that KuCoin allowed its platform to be used to launder over $9 billion in funds.
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 news of the indictment broke, KuCoin claimed on its platform that it is operating well and that user assets are secure. It stated that it is currently investigating the details through its lawyers and emphasized that KuCoin respects the laws and regulations of all countries and adheres strictly to compliance standards.
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