Tuesday, April 16, 2024
HomeCryptocurrencyKuCoin and Founders Face US Prosecution over Alleged AML Violations

KuCoin and Founders Face US Prosecution over Alleged AML Violations


US federal prosecutors introduced costs in opposition to crypto
change KuCoin and two of its founders for allegedly violating anti-money
laundering (AML) legal guidelines at present (Tuesday). Based on the indictment, KuCoin
operated within the US with out correct registration and failed to keep up an
ample AML program.

The indictment, introduced forth by the US Division of
Justice (DOJ), accuses KuCoin and its founders, Chun Gan and Ke Tang, of
operating a money-transmitting enterprise serving over 30 million clients with out
implementing a know-your-customer (KYC) or AML program till 2023. It was famous
that even after the implementation of a KYC program, current clients had been
not topic to its necessities. Regardless of these allegations, neither Gan nor
Tang has been arrested, the DOJ clarified in a press launch.

Moreover, the indictment claims that KuCoin didn’t register
with the US Monetary Crimes Enforcement Community as a cash providers enterprise,
as required by legislation. Prosecutors argue that this failure to implement ample
AML measures allowed KuCoin to be exploited for cash laundering actions,
together with these associated to sanctions violations, darknet markets, and numerous
fraudulent schemes.

DOJ and CFTC Pursue Penalties

The indictment additionally alleges KuCoin’s involvement in
receiving cryptocurrency from Twister Money, a sanctioned crypto mixer, totaling
over $3.2 million. This connection was highlighted in legal filings in opposition to
builders related to Twister Money.

Along with the DOJ’s costs, the Commodity Futures
Buying and selling Fee (CFTC) filed a lawsuit in opposition to KuCoin, accusing the change
of failing to register as a futures fee service provider or implement the
required KYC program. The CFTC seeks financial penalties, buying and selling and
registration bans, in addition to an injunction in opposition to KuCoin.

Each the DOJ and the CFTC are pursuing authorized motion in opposition to
KuCoin, aiming for forfeiture and legal penalties within the case introduced forth
by the DOJ and financial penalties and regulatory measures by means of the CFTC’s
lawsuit. KuCoin has but to publicly reply to those costs.

US federal prosecutors introduced costs in opposition to crypto
change KuCoin and two of its founders for allegedly violating anti-money
laundering (AML) legal guidelines at present (Tuesday). Based on the indictment, KuCoin
operated within the US with out correct registration and failed to keep up an
ample AML program.

The indictment, introduced forth by the US Division of
Justice (DOJ), accuses KuCoin and its founders, Chun Gan and Ke Tang, of
operating a money-transmitting enterprise serving over 30 million clients with out
implementing a know-your-customer (KYC) or AML program till 2023. It was famous
that even after the implementation of a KYC program, current clients had been
not topic to its necessities. Regardless of these allegations, neither Gan nor
Tang has been arrested, the DOJ clarified in a press launch.

Moreover, the indictment claims that KuCoin didn’t register
with the US Monetary Crimes Enforcement Community as a cash providers enterprise,
as required by legislation. Prosecutors argue that this failure to implement ample
AML measures allowed KuCoin to be exploited for cash laundering actions,
together with these associated to sanctions violations, darknet markets, and numerous
fraudulent schemes.

DOJ and CFTC Pursue Penalties

The indictment additionally alleges KuCoin’s involvement in
receiving cryptocurrency from Twister Money, a sanctioned crypto mixer, totaling
over $3.2 million. This connection was highlighted in legal filings in opposition to
builders related to Twister Money.

Along with the DOJ’s costs, the Commodity Futures
Buying and selling Fee (CFTC) filed a lawsuit in opposition to KuCoin, accusing the change
of failing to register as a futures fee service provider or implement the
required KYC program. The CFTC seeks financial penalties, buying and selling and
registration bans, in addition to an injunction in opposition to KuCoin.

Each the DOJ and the CFTC are pursuing authorized motion in opposition to
KuCoin, aiming for forfeiture and legal penalties within the case introduced forth
by the DOJ and financial penalties and regulatory measures by means of the CFTC’s
lawsuit. KuCoin has but to publicly reply to those costs.



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