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.
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. The Department has emphasized the importance of compliance for these exchanges.
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