KuCoin Cryptocurrency Exchange Faces Justice Department Indictment for Money Laundering
Summary:
The US Department of Justice has unsealed an indictment against cryptocurrency platform KuCoin and its co-founders, Chun Gan and Ke Tang, for operating an unlicensed money transmitting service and violating the Bank Secrecy Act. The founders knowingly failed to install an Anti-Money Laundering program, enabling money laundering and terrorist financing activities. This led to the company being charged with running an unlicensed money transmitting operation, creating a haven for illicit activities.
The indictment of cryptocurrency platform KuCoin, along with its two co-founders, has been unveiled by officials from the US Department of Justice. The charge is that they have contrived to run an unsanctioned money transmitting enterprise as well as violating the Bank Secrecy Act (BSA). On March 26, the justice office announced that KuCoin co-founders Chun Gan and Ke Tang had intentionally neglected to implement an Anti-Money Laundering procedure on their platform. This led to the use of their establishment for activities connected to the financing of terrorism and money laundering. The company was also accused of running an unauthorized operation of money transmission and breaching the BSA.
US Attorney, Damian Williams, stated that KuCoin and its initiators purposely obscured the large number of US users conducting transactions on their platform. He added that KuCoin misleadingly capitalized on its large US clientele to become a leading global platform for both cryptocurrency derivatives and spot exchanges, with trade volume worth trillions of dollars annually and billions daily.
Williams further stressed that the co-founders' failure to put in the basic anti-money laundering measures allowed KuCoin to operate unnoticed in the financial markets, providing a hiding place for shady money laundering activities. This story is yet evolving, and additional details will be made available as the story unfolds.
Published At
3/26/2024 6:27:06 PM
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