KuCoin’s $300M Oopsie: Founders Flee Like Cats in a Dog Park! 🐱🐶

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Well, folks, it seems that KuCoin has found itself in a bit of a pickle, having pleaded guilty to running a money-transmitting business without so much as a license to hang on the wall. They’ve agreed to cough up a whopping $300 million, which is enough to make a catfish blush! 🐟

As part of this grand settlement, the founders, Eric Tang and Michael Gen, are waving goodbye to $2.7 million and their management roles, like a couple of cowboys riding off into the sunset. And just to spice things up, they’ve decided to take a two-year vacation from the US market. Ain’t that a hoot? 🎉

KuCoin Fined $300M

Now, let’s not forget that KuCoin was charged with giving the ol’ heave-ho to anti-laundering laws, just a few short years after they settled a similar hullabaloo in New York. The settlement, announced on January 27, includes a forfeiture of $184.5 million and a fine of $112 million. That’s a whole heap of cash, folks! The entity, run by PEKEN Global Ltd., has also agreed to take a little break from the US market for two years. Talk about a time-out! ⏳

“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.”

Just last December, KuCoin settled another lawsuit, this time for a mere $22 million in fines and refunds. They also agreed to stop trading in New York after the state Attorney General claimed they were playing fast and loose with the rules, pretending to be a crypto exchange while failing to register as a securities and commodities broker-dealer. Oh, the tangled webs we weave! 🕸️

KuCoin’s Regulatory Issues

According to US Attorney Danielle R. Sassoon, KuCoin has been about as good at implementing anti-money laundering policies as a cat is at swimming. 🐱‍👤

“For years, KuCoin avoided implementing required anti-money laundering policies designed to identify criminal actors and prevent illicit transactions.”

US authorities are wagging their fingers, alleging that KuCoin was the go-to place for billions of dollars worth of suspicious transactions, including all sorts of nefarious activities from the dark corners of the internet. They’ve also been under the watchful eye of regulators in Canada, where the Ontario Securities Commission decided they weren’t fit to serve users after failing to meet the rules. And let’s not forget their exit from the Indian market for the same reason. It’s like a game of musical chairs, and KuCoin keeps getting left out! 🎶

US Tightens Compliance Rules

As if that weren’t enough, US authorities have been tightening the screws on compliance like a stubborn jar lid. KuCoin isn’t the only one in hot water; Seychelles-based BITMEX also got slapped with a $100 million fine for breaching US anti-money laundering laws. Seems like the Bank Secrecy Act is doing its job, keeping a close eye on those who think they can dance around the rules! 💃

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2025-01-28 18:05