Regulators are increasing their scrutiny of crypto exchanges, forcing them to comply with anti-money laundering laws.
The FBI and other authorities recently obtained data from Kraken. Others, like Coinbase, are coordinating with regulators to improve compliance.
OKX Fined $500M for Unlicensed Operations
OKX’s operator, Aux Cayes FinTech Co. Ltd, has pleaded guilty to running an unlicensed money-transmitting business. After an investigation by the U.S. Department of Justice (DOJ), OKX will pay over $500 million in penalties. This includes an $84 million fine and the forfeiture of $421 million in fees collected from institutional clients.
OKX announced the settlement in an X post, “We cooperated with the US Dept of Justice in their thorough investigation of our business. We had a small percentage of customers who were able to use our international services due to historical compliance gaps. Today our compliance controls are among the leading in the industry. This matter is now behind us.”
We cooperated with the US Dept of Justice in their thorough investigation of our business. We had a small percentage of customers who were able to use our international services due to historical compliance gaps. Today our compliance controls are among the leading in the… pic.twitter.com/sg1b2GC4wE
— OKX (@okx) February 24, 2025
OKX failed to enforce compliance
The DOJ accused OKX of facilitating more than $5 billion in suspicious transactions. U.S. Attorney Matthew Podolsky said financial institutions that ignore compliance “will face consequences.” The FBI also criticized OKX’s affiliate for allegedly advising individuals on how to bypass regulations.
OKX admitted that some U.S. customers had accessed its global platform due to past compliance gaps. However, the exchange stated that these users made up a small portion of its client base and are no longer on the platform. The company also emphasized that there were no charges against its employees.
The violations reportedly took place from 2018 to early 2024. Despite maintaining a policy that prevents U.S. users from using the exchange, the DOJ claimed OKX failed to fully enforce it. The crypto trading platform has expressed plans to address these compliance gaps. Some noted measures included hiring a compliance consultant.
Unlike Binance, whose settlement with US authorities mandated a leadership change, OKX noted that it will operate as usual. And that its CEO, Star Xu, will continue in his role.
We will continue to mature our compliance operations and continue to work closely with global regulators. Our vision is to make OKX the gold standard of global compliance at scale across different markets and their respective regulatory bodies. I am proud of our company. https://t.co/kZEyuzL9K5
— Star (@star_okx) February 24, 2025
Commenting on the situation, Xu shared on X, “We will continue to mature our compliance operations and continue to work closely with global regulators. Our vision is to make OKX the gold standard of global compliance at scale across different markets and their respective regulatory bodies. I am proud of our company.”
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