The US has charged KuCoin, a crypto exchange, and its founders with crimes.

The US has charged KuCoin, a crypto exchange, and its founders with crimes.

On Tuesday, March 26, the United States Government brought forth indictments against KuCoin, a prominent cryptocurrency exchange, and its co-founders, Chun Gan and Ke Tang, alleging various criminal charges. Specifically, Gan and Tang are accused of failing to adhere to anti-money laundering protocols, thereby allowing more than $5 billion worth of illicit funds to traverse through the exchange’s trading platform. As a result, they now face repercussions for violations related to money transmission and the Bank Secrecy Act, with the charges explicitly referencing a “multibillion-dollar criminal conspiracy.” These allegations were outlined in an official press release from the United States Southern District of New York, highlighting the founders’ purported involvement in the illicit activities.

The indictment was formally announced by Damian Willians, the US Attorney for the Southern District of New York, alongside Darren McCormack, the head of the Homeland Security Investigations New York Field Office. Within the unsealed document, it was alleged that KuCoin deliberately disregarded US anti-money laundering regulations in its quest to expand into one of the world’s premier cryptocurrency exchanges. Attorney Willians further asserted that the exchange had actively sought to obscure the number of its US-based users, implying a deliberate attempt to evade regulatory scrutiny.

Furthermore, the document contended that KuCoin had capitalized on its substantial US customer base to ascend to its status as one of the globe’s largest exchanges, characterizing this trajectory as part of a broader “criminal conspiracy.” These revelations underscore the severity of the allegations leveled against KuCoin and its founders, signaling a significant escalation in the ongoing regulatory scrutiny surrounding the cryptocurrency industry.

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