Seychelles-based crypto exchange KuCoin pleaded guilty on Monday to operating an unlicensed money-transmitting business and agreed to pay nearly $300 million in fines and forfeitures.

Peken Global Ltd., one of three entities operating as KuCoin, entered the plea in a Manhattan federal court as part of an agreement, prosecutors said Monday.

U.S. District Judge Andrew Carter imposed a $113 million fine and ordered $184.5 million in forfeitures, according to a U.S. Attorney’s Office statement.

The charges stemmed from a March 2024 indictment against KuCoin and its founders, Chun Gan and Ke Tang, both Chinese nationals. 

Prosecutors accused the company of running an unlicensed money-transmitting business and failing to implement an anti-money laundering program.

Gan and Tang have signed deferred prosecution agreements, avoiding further legal action. Both founders will forfeit $2.7 million each.

In a statement on Monday, Gan announced he has stepped down from all roles at the company as part of the settlement agreement. 

He described the resolution as a “favorable outcome” that dismisses all charges against him and co-founder Ke Tang upon satisfaction of specific conditions. Gan emphasized that neither he nor Tang intended to violate U.S. laws.

Gan said KuCoin would focus on global growth under CEO BC Wong’s leadership, calling the team “exceptional.” He also expressed plans to pursue new blockchain ventures, reaffirming his belief in the technology’s transformative potential.

Tang, also known as Eric, who was indicted along with Peken in March 2024, will also “no longer have any role in KuCoin’s management or operations,” prosecutors said.

The case follows KuCoin’s December 2023 settlement with New York state regulators. 

The exchange agreed to pay $22 million in fines and refunds and halted trading in New York, resolving allegations it operated without proper registration as a securities and commodities broker-dealer.

The KuCoin penalty is the latest in a series of U.S. enforcement actions targeting crypto exchanges.

Earlier this month, Seychelles-based BitMEX was ordered to pay $100 million for failing to comply with U.S. anti-money laundering laws.

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Article Source : decrypt Website