---
title: "KuCoin and Founders Charged by DOJ for AML Violations"
url: https://thecoingazette.com/kucoin-and-founders-charged-by-doj-for-aml-violations/
date: 2024-03-28
modified: 2024-03-28
author: "Coin Gazette Editorial"
description: "KuCoin, which has grown to become one of the largest cryptocurrency exchanges in the world, has received more than $5 billion and has transmitted more than $4 billion in funds..."
categories:
  - "Exchanges"
  - "Regulations"
tags:
  - "aml compliance"
  - "crypto"
  - "crypto exchanges"
  - "doj"
  - "kucoin"
word_count: 171
---

# KuCoin and Founders Charged by DOJ for AML Violations

KuCoin, which has grown to become one of the largest cryptocurrency exchanges in the world, has received more than $5 billion and has transmitted more than $4 billion in funds that are dubious and criminal.

The **U.S. Department of Justice (DOJ)** has brought **serious charges** against the cryptocurrency exchange **KuCoin**, along with its two founders, **Chun Gan** and **Ke Tang**. Both founders are **Chinese nationals** who are currently not in custody as of the [Business Times report](https://www.btimesonline.com/articles/165104/20240327/kucoin-faces-doj-charges-for-aml-violations-founders-at-large.htm).

The charges stem from **anti-money laundering (AML) violations**. KuCoin allegedly failed to adhere to AML requirements, allowing threat actors to use the platform for money laundering. Specifically, the indictment accuses KuCoin and its founders of:

- Operating an unlicensed money-transmitting business.

- Conspiring to violate the Bank Secrecy Act by willfully failing to maintain an adequate AML program.

- Failing to verify customer identities and failing to file suspicious activity reports.

Crypto exchanges serving customers in the United States are required to abide by US law to prevent **illegal financial activity**, according to the [United States **Department of Justice**](https://www.justice.gov/usao-sdny/pr/prominent-global-cryptocurrency-exchange-kucoin-and-two-its-founders-criminally). The Department has emphasized the importance of compliance for these exchanges.

**Sources**:

[https://www.justice.gov/usao-sdny/pr/prominent-global-cryptocurrency-exchange-kucoin-and-two-its-founders-criminally](https://www.justice.gov/usao-sdny/pr/prominent-global-cryptocurrency-exchange-kucoin-and-two-its-founders-criminally)

[https://www.btimesonline.com/articles/165104/20240327/kucoin-faces-doj-charges-for-aml-violations-founders-at-large.htm](https://www.btimesonline.com/articles/165104/20240327/kucoin-faces-doj-charges-for-aml-violations-founders-at-large.htm)