KuCoin’s operator, PEKEN Global Limited, has admitted guilt and agreed to pay $297 million in penalties for operating an unlicensed money-transmitting business in the United States. The cryptocurrency exchange, which served approximately 1.5 million US users since 2017, failed to implement mandatory anti-money laundering (AML) and know-your-customer (KYC) protocols until August 2023.

The U.S. Department of Justice found that KuCoin deliberately misled customers about KYC requirements and facilitated billions in suspicious transactions, including proceeds from darknet markets, malware, ransomware, and fraud schemes. The platform’s US operations generated $184.5 million between 2017 and 2024, forming the basis for the penalty calculation along with a $112.9 million criminal fine.

As part of the settlement:
– KuCoin will exit the US market for two years
– Founders Chun Gan (Michael) and Ke Tang (Eric) will be removed from management
– The founders must forfeit $2.7 million in earnings from US operations
– Existing customers can withdraw funds without KYC verification

This enforcement action represents one of the largest penalties imposed on a cryptocurrency exchange for regulatory violations in the United States.