Crypto Exchange KuCoin Hit with $300 Million US Settlement

Crypto News Regulation

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 28, 2025

Key Takeaways

KuCoin settles US charges with a $300 million deal, which halts operations in the country for two years;
Founders Michael Gan and Eric Tang step down, forfeiting $2.7 million as part of the agreement;
KuCoin strengthens compliance and reassures users that global operations remain unaffected.

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Crypto Exchange KuCoin Hit with $300 Million US Settlement

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KuCoin $1.54B , a cryptocurrency exchange, has admitted to running an unlicensed money-transmitting business in the US and has agreed to a $300 million settlement with authorities.

The agreement also requires its founders, Michael Gan and Eric Tang, to step down from their roles.

The US Department of Justice announced on January 27 that PEKEN Global Limited, operating as KuCoin, pleaded guilty in a Manhattan federal court.

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As part of the settlement, the founders, Gan and Tang, will forfeit $2.7 million and give up their involvement in KuCoin’s operations. KuCoin will forfeit $184.5 million and pay a $112.9 million fine. Additionally, the company will halt operations in the US for two years.

Michael Gan described the deal as a “favorable outcome” and confirmed that BC Wong, KuCoin’s Chief Legal Officer, will take over as the new CEO.

Gan also noted that the charges against him and Tang were dismissed after meeting certain conditions outlined in the settlement. He added:

I appreciate the DOJ’s constructive approach in reaching this resolution, which reflects my lack of intent to break US laws or engage in any illegal activities.

In a blog post on January 28, KuCoin reassured its users that the settlement would not affect its operations in other regions. The company stated it has made progress in improving its compliance practices and platform security to align with regulatory requirements.

Recently, the Securities and Exchange Commission (SEC) imposed a $45 million penalty on Robinhood, a crypto trading platform. What happened? Read the full story.