KuCoin And Its Founders Sued By United States Department Of Justice

The U.S. Department of Justice (DoJ) alongside the Commodity and Futures Trading Commission (CFTC) have brought charges and initiated legal action against KuCoin, a leading global cryptocurrency exchange, and two of its founders for breaching the Bank Secrecy Act and engaging in unlicensed money transmission.

In their announcement, the DoJ asserted that KuCoin, along with its co-founders Chun Gan and Ke Tang, violated U.S. Anti-Money Laundering Laws by establishing KuCoin as one of the foremost cryptocurrency exchanges worldwide.

Breaking The Law

Southern District of New York Attorney General, Damian Williams, and Acting Special Agent in Charge of the New York Homeland Security Investigations Field Office, Darren McCormack, disclosed that an indictment had been filed against KuCoin and its founders Chun Gan and Ke Tang. As per the indictment, KuCoin and its founders Chun and Ke Tang are accused of colluding to run an unlicensed money transmission business and conspiring to breach Bank Secrecy laws.

Damian Williams stated regarding the Kucoin case that as outlined in the indictment, KuCoin and its founders knowingly concealed the fact that a substantial number of U.S. users were engaging in transactions on the crypto exchange platform. Indeed, he further stated, KuCoin purportedly utilized its significant U.S. customer base to emerge as one of the largest cryptocurrency derivatives and spot exchanges globally, conducting billions of dollars in daily transactions and trillions of dollars in annual trading volume.

Clarity Is Key

However, Damian clarified, while capitalizing on distinct opportunities in the United States, financial entities like KuCoin are also obligated to adhere to U.S. regulations to aid in the identification and dismantling of criminal activities and illicit financing schemes. Allegedly, KuCoin consciously opted not to comply with these regulations.

The defendants purportedly neglected to implement even rudimentary anti-money laundering measures, permitting KuCoin to operate within the shadows of financial markets and serve as a refuge for illicit money laundering. Damian concluded that the indictment should serve as a clear warning to other cryptocurrency exchanges in the sense that if they intend to cater to U.S. customers, they must abide by U.S. law, without exception.