KuCoin Fined $300M for Operating Without a License

The US Department of Justice has announced a $300 million settlement with crypto exchange KuCoin, following a guilty plea from the trading platform. 

The DOJ announced on Monday, January 27, that KuCoin will pay a $112.9 million fine and a forfeiture of $118.45 million. Furthermore, KuCoin founders Michael Gan and Eric Tang will step down from their roles at the exchange and also forfeit around $2 million.

What’s the background story?

US prosecutors accused KuCoin executives of failing to implement adequate security measures at the exchange. This includes poor anti-money laundering (AML) and Know Your Customers (KYC) procedures. Authorities claimed KuCoin users were allowed to use the exchange without providing identification details. This meant criminals and other sanctioned individuals could move in and out of the trading platform.

The DOJ wrote, “KuCoin employees repeatedly stated on public social media sites that KYC was not mandatory on KuCoin, including in response to posts from customers who had identified themselves as being in the US.”

Responding to the news, KuCoin expressed commitment to strengthening ties with US authorities. It said, “We’re pleased to announce that KuCoin has settled with U.S. authorities, a major step forward in our journey. This milestone brings clarity to our future and strengthens our commitment to innovation, compliance, and delivering value to our 38M+ users worldwide.

KuCoin Settles with U.S. Authorities, Looks to the Future

The exchange also noted the news did not affect its operations outside of the US. KuCoin operates across several nations, famous for offering a wide range of cryptocurrencies as well as multiple features for advanced traders.

The crypto exchange is taking significant steps to address concerns in the U.S., including appointing the company’s chief legal officer, BC Wong, as the new CEO.

“I’m proud to share that we’ve settled with U.S. authorities, providing clarity for our future growth. This moment is not just about resolving challenges—it’s about looking ahead with renewed purpose,” Gan wrote on X.

The news comes after authorities in France announced plans to probe Binance for money laundering.

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