The parent company of crypto exchange KuCoin admitted liability in a legal case with the U.S. Department of Justice (DOJ), agreeing to pay approximately $300 million in penalties and exit the U.S. market for two years as part of the settlement.
The DOJ stated that Peken Global Ltd, a Seychelles-registered company, pleaded guilty to providing financial services in the United States without a license through KuCoin, the platform it operates.
Under the terms of the settlement, KuCoin will pay $112.9 million in fines and reimburse the government $184.5 million in earnings made from serving U.S. customers. Additionally, KuCoin will cease operations in the U.S. for at least two years.
As part of the agreement, the exchange’s founders, Chun Gan and Ke Tang — better known as Michael Gan and Eric Tang — are required to pay $2.7 million and step down from all management positions at KuCoin. Criminal proceedings against them in the U.S. were suspended for two years.
KuCoin reps confirmed the agreement with U.S. regulators, assuring users that it won’t impact the exchange’s operations in other markets. Michael Gan announced that the position of CEO will be taken over by the exchange’s current CLO, BC Wong. He also emphasized that, following the resolution of legal claims in the U.S., KuCoin intends to fully focus on global growth.
In March 2024, the U.S. Attorney’s Office for the Southern District of New York filed criminal charges against KuCoin and its founders, accusing them of conspiracy to conduct illegal money transfers, violating the Bank Secrecy Act (BSA), failing to comply with AML regulations, and operating an unlicensed business.
