KuCoin, a cryptocurrency exchange based in Seychelles, will pay nearly $300 million in penalties and halt operations in the U.S. for two years. This settlement comes after charges claiming the exchange failed to properly monitor its network for criminal activity. Since 2019, Peken Global, the owner of KuCoin, did not register as a money transmitting business with the U.S. Treasury’s Financial Crimes Enforcement Network. Between 2017 and 2024, KuCoin did not implement strong anti-money laundering and know-your-customer programs, allowing billions in suspicious transactions to go unreported. Although they started requiring customer identification in 2023, existing customers were not subjected to the same verification processes.
By 
Aaron NicodemusJanuary 29, 2025
KuCoin Settles with U.S. Officials for $300 Million
The Sechelles-based operator of cryptocurrency exchange KuCoin, Peken Global, has agreed to pay close to $300 million in penalties. This settlement comes after authorities charged the company for not sufficiently monitoring possible criminal activities on its platform.
According to the Department of Justice, Peken Global will pay $297 million for failing to register as a money transmitting business with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury. Their activities between 2017 and 2024 showed a significant oversight, as KuCoin lacked proper anti-money laundering (AML) and know-your-customer (KYC) systems.
These failures allowed billions of dollars in suspicious transactions to go unreported. Before 2023, the exchange did not collect any identifying information from its customers. Even after starting to implement KYC for new users in 2023, they did not apply the same requirements to existing customers.
This settlement illustrates the growing regulatory scrutiny in the cryptocurrency industry, emphasizing the need for exchanges to adopt more rigorous compliance measures.
What is KuCoin’s recent issue with the law?
KuCoin, a crypto exchange, has to pay a massive penalty of $297 million for breaking the Bank Secrecy Act (BSA). This law helps prevent money laundering and funding of illegal activities.
Why did KuCoin get such a hefty fine?
The fine was due to KuCoin not properly following rules meant to keep their platform safe from illegal money transfers. They did not have the right systems in place to monitor transactions.
What does the Bank Secrecy Act require?
The BSA requires financial institutions to report certain transactions and keep records that help track suspicious activity. This is to ensure that illegal money isn’t being funneled through their services.
How does this penalty affect KuCoin users?
While the penalty is large, it is uncertain how it will directly affect users. However, it may lead to stricter regulations and increased measures to protect users in the future.
Is KuCoin still a safe platform to use?
Despite this fine, many users still find KuCoin to be a reliable platform for trading cryptocurrencies. However, it’s always best to stay informed about any changes and continue practicing safe trading habits.
