Key Highlights:
- KuCoin and its founders are accused of avoiding US anti-money laundering laws.
- They settled with New York’s AG for $22 million and will leave the New York market.
Yello ParadiseSquad! The US government is pointing fingers at KuCoin, a big name in crypto exchanges, accusing it and its founders of not following important money rules.
What’s the Claim?
Founders Chun Gan and Ke Tang are facing serious charges for allegedly skipping out on anti-money laundering laws and running a business without the proper license. But so far, they haven’t been arrested.
Why It Matters
The US Attorney claims KuCoin hid the fact that lots of Americans were trading on their platform. This is a big no-no because it looks like they were trying to avoid certain US laws.
The Big Problem
According to the Department of Justice (DOJ), KuCoin might have let over $4 billion of dodgy money move through its system. That’s a lot of cash moving in the shadows.
US Traders Left in the Dark
Apparently, KuCoin didn’t even let American users say who they were when signing up, which is a major issue. They only started checking who people were in July 2023 after they found out the US was investigating.
A Costly Settlement
Last year, KuCoin had to pay $22 million to settle with the New York Attorney General and promised to stop working in New York. A big chunk of that money went back to customers as refunds.
A First for the DOJ
This is a big deal because it’s the first time the DOJ has gone after a crypto exchange like this after they tackled Binance, another giant in the field, last year.
Looking Ahead
The case against KuCoin and its founders is heating up, marking a significant moment for crypto regulations in the US. Stay tuned, ParadiseSquad, as we follow this developing story and what it means for the world of crypto!
