U.S. Charges Major Crypto Exchange KuCoin and Founders for Breaking Financial Laws
KuCoin and its founders face U.S. charges for illicit operations and evading anti-money laws
The U.S. Southern District of New York's chief prosecutor, Damian Williams, along with HSI New York's interim chief, Darren McCormack, have unveiled indictments against the global digital currency platform KuCoin and its creators, Chun Gan ("Michael" ) and Ke Tang ("Eric" ).
These charges involve illegal money transmission and breaking the Bank Secrecy Act, including not having a proper program to prevent money laundering and terrorist financing, failing to check customer identities properly, and not reporting suspicious activities.
The indictment highlights KuCoin's strategy of growing its U.S. user base to become a top cryptocurrency exchange, boasting daily transactions worth billions and yearly volumes in the trillions.
However, this growth came with a disregard for U.S. laws meant to fight financial crime, leading to KuCoin's involvement in over $9 billion of dubious transactions.
Founded in September 2017 by Gan, Tang, and associates, KuCoin aggressively pursued American customers for its trading services, amassing over 30 million users worldwide.
Despite legal requirements to register with U.S. regulatory agencies like FinCEN and comply with AML and customer identification protocols, KuCoin opted to ignore these rules.
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