u.today
Cryptocurrency exchange KuCoin and two of its founders (Chun Gan and Ke Tang) have been hit with criminal charges by the United States Department of Justice.
The indictment alleges that KuCoin and its founders violated the Bank Secrecy Act by failing to maintain an adequate anti-money laundering (AML) program. This allowed KuCoin to serve as "a haven for illicit money laundering."
U.S. Attorney Damian Williams noted that KuCoin had deliberately concealed the fact that a significant number of U.S. users were trading on its platform. Despite its size and global reach, KuCoin allegedly chose not to comply with U.S. law.
According to the allegations outlined in the DOJ's indictment, KuCoin actively prevented its U.S. customers from identifying themselves as such. Moreover, it misled investors about its customer base. KuCoin's no-KYC policy was instrumental in ensuring user growth.
Both Gan and Tang, who are both citizens of China, are now facing charges carrying a maximum sentence of five years in prison.