It was announced that an indictment was prepared against KuCoin, one of the world's leading cryptocurrency exchanges, and its founders Chun Gan and Ke Tang by Damian Williams, United States Attorney for the Southern District of New York, and Darren McCormack, Acting Special Agent in Charge of the Homeland Security Investigations (HSI) New York Field Office. The indictment stated that KuCoin and its founders engaged in conduct contrary to US Anti-Money Laundering Laws and engaged in unlicensed money transfers in the process. Specifically, the exchange is accused of failing to operate in compliance with an adequate anti-money laundering (AML) program, failing to implement required procedures for authenticating customers, and failing to report suspicious activity.
US Commodity Futures Trading Commission Also Joined the Lawsuit
The US Commodity Futures Trading Commission (CFTC) has also reportedly filed a separate lawsuit against the KuCoin Exchange. This lawsuit is said to include allegations that KuCoin has failed to comply with regulations in the US, thereby exposing investors to potential risks.
US Attorney's Statements and Allegations
In a statement, US Attorney Damian Williams alleged that KuCoin and its founders intentionally attempted to conceal the significant number of US users trading on their platform. Williams stated that KuCoin has become one of the largest cryptocurrency derivatives and spot exchanges in the world, capitalizing on its large US customer base. However, according to Williams, KuCoin was required to comply with US law, but the exchange deliberately chose not to do so.
KuCoin's Response to the Allegations and Message to Cryptocurrency Exchanges
The indictment emphasizes that crypto exchanges, such as KuCoin, must comply with US law and that serious steps must be taken in this regard. Prosecutor Williams made it clear that this indictment sends a clear message to other cryptocurrency exchanges and that any exchange that plans to serve US customers must comply with US law.
