Crypto Exchange KuCoin Violated Anti-Money Laundering Laws, U.S. Charges

[ABCbits]

Crypto Exchange KuCoin Violated Anti-Money Laundering Laws, U.S. Charges

U.S. federal prosecutors charged crypto exchange KuCoin and two of its founders with violating anti-money laundering laws on Tuesday, saying the exchange operated in the U.S., lied to at least one of its investors about operating in the U.S. and failed to both register with U.S. government entities and maintain an anti-money laundering program. Read more here.


It seems KuCoin got accused due to optional KYC/AML measure. I recall similar thing happened with Binance last year which made the former CEO resigned. Your opinion is greatly appreciated.

[Zed0X]

I knew this is going to happen sooner or later. I'm not surprised that they will be targeted too because Kucoin has been imitating what Binance does for years. They also started with no KYC, then no KYC up to 2 BTC, until the full implementation of KYC for all.

[examplens]

What we have seen so far when it comes to the SEC lawsuits, Kucoin will have to pay for this or go out of business.
I didn't go into much detail based on which the fines were determined, but I would definitely say that it is strange that Kucoin gets a bigger fine than Binance, it is certainly a smaller exchange with less volume.

Then the question arises (at least to me), why only now? Why weren't indictments brought earlier, when smaller amounts were involved? It seems as if they waited until now so that the punishment could be even greater.

I believe that Kucoin can handle this and survive this kind of punishment, but how many other exchanges can do that? Who is next and will they decide to go bankrupt rather than pay astronomical sums?

[SamReomo]

It seems KuCoin got accused due to optional KYC/AML measure.

KuCoin is their new target and they will slowly target other exchanges as well when they find opportunity.

That's the worst step taken against another exchange and that clearly means that regulators will try their best to regulate any platform and they are strictly against No-KYC thing.

It means they want to know the details of all the users who have accounts on those exchanges and any exchange that says no KYC will be their next victim.

It's also fault of KuKoin to some extent because if they were operating in US then they should have taken all such measures in order to protect themselves form such law suits.

[ScamViruS]

Kucoin was running no KYC 2 BTC withdrawal service a few months ago, then they too were forced to implement full KYC. It was conceivable that Kucoin would fall into such a situation as Binance fell, and through this news I confirmed that Kucoin was also their target. Now other exchanges will also fall into the same situation one by one which will create more fear among crypto traders in using CEX exchange thus hindering the main purpose of crypto.

[TomPluz]

Seems to me that SEC of USA is on a crusade to fight all big crypto exchanges inside and outside the country who are doing business within the mainland. Kucoin has been on the business for years and just like Binance it is one of the top exchanges we have around in terms of business volume handled and influence. Incorporated in the Cayman Islands, the Republic of Seychelles and Singapore, it is respected well in the cryptocurrency industry. The way I am seeing it is that Kucoin can be following the path taken by Binance and I am wondering if what can happen to CZ will also happen to Kucoin founders which is possible imprisonment and not just paying big venalities amounting to millions of dollars. North Korea is taking advantage of the crypto industry by instigating successful hackings...but USA is doing a lawfare in getting what they wanted.

[ABCbits]

Then the question arises (at least to me), why only now? Why weren't indictments brought earlier, when smaller amounts were involved? It seems as if they waited until now so that the punishment could be even greater.

I'd guess it's because they went after Binance first which is more famous. Although looking at how SEC recently sanctioned by Utah distirct, it's also possible it's an attempt to restore their reputation.

[MCcabe Rory]

Seems to me that SEC of USA is on a crusade to fight all big crypto exchanges inside and outside the country who are doing business within the mainland. Kucoin has been on the business for years and just like Binance it is one of the top exchanges we have around in terms of business volume handled and influence. Incorporated in the Cayman Islands, the Republic of Seychelles and Singapore, it is respected well in the cryptocurrency industry. The way I am seeing it is that Kucoin can be following the path taken by Binance and I am wondering if what can happen to CZ will also happen to Kucoin founders which is possible imprisonment and not just paying big venalities amounting to millions of dollars. North Korea is taking advantage of the crypto industry by instigating successful hackings...but USA is doing a lawfare in getting what they wanted.

Don't you think these sanctions are targeted? I hope they come out from this.. where would kucoin users go to? Any alternatives ?

[CryptoTalisman]

Seems to me that SEC of USA is on a crusade to fight all big crypto exchanges inside and outside the country who are doing business within the mainland. Kucoin has been on the business for years and just like Binance it is one of the top exchanges we have around in terms of business volume handled and influence. Incorporated in the Cayman Islands, the Republic of Seychelles and Singapore, it is respected well in the cryptocurrency industry. The way I am seeing it is that Kucoin can be following the path taken by Binance and I am wondering if what can happen to CZ will also happen to Kucoin founders which is possible imprisonment and not just paying big venalities amounting to millions of dollars. North Korea is taking advantage of the crypto industry by instigating successful hackings...but USA is doing a lawfare in getting what they wanted.

Don't you think these sanctions are targeted? I hope they come out from this.. where would kucoin users go to? Any alternatives ?

Initially i used to blame SEC for their actions but it's clear they are fighting for users interest. Imagine if SEC hasn't detected the money laundering act been perpetrated by the Kucoin executives, we would have perhaps witness another black swan like FTX. Am even so much excited that the FTX founder is going to serve 25 years imprisonment.
This should serve as a lesson for those who may want to take a similar path in the future. As for where Kucoin Users will go, i think its best users look out for regulatory compliant cex like Bitget. Coinbase would have been a perfect stop but they are also in some kind of mess with SEC

[ABCbits]

Don't you think these sanctions are targeted? I hope they come out from this.. where would kucoin users go to? Any alternatives ?

Initially i used to blame SEC for their actions but it's clear they are fighting for users interest. Imagine if SEC hasn't detected the money laundering act been perpetrated by the Kucoin executives, we would have perhaps witness another black swan like FTX. Am even so much excited that the FTX founder is going to serve 25 years imprisonment.

Can you share source of your statement? News i shared only mention KuCoin didn't implement KYC/AML and doesn't mention any executive.

This should serve as a lesson for those who may want to take a similar path in the future. As for where Kucoin Users will go, i think its best users look out for regulatory compliant cex like Bitget. Coinbase would have been a perfect stop but they are also in some kind of mess with SEC

P2P or DEX is also valid option if KuCoin coin prefer not giving too much personal financial data.

[Gurujebs]

It seems KuCoin got accused due to optional KYC/AML measure. I recall similar thing happened with Binance last year which made the former CEO resigned. Your opinion is greatly appreciated.

The truth is that you can't satisfy United state when your business involves anything that has to do with money, they don't want competition dwell among their circle and this is why you see them go after crypto exchanges that provide service for US. If reallik these exchanges, I would exit their market to avoid future problems.

Has Counbase ever been accused of money laundering before? That's no because they wouldn't shame their own. The only time I think SEC was after coinbase was listing of coins that was regarded as security which were the likes the Solana, Matic and many more. This is why I don't blame crypto projects when they don't allow US citizens and that's better going forward.

[MCcabe Rory]

Seems to me that SEC of USA is on a crusade to fight all big crypto exchanges inside and outside the country who are doing business within the mainland. Kucoin has been on the business for years and just like Binance it is one of the top exchanges we have around in terms of business volume handled and influence. Incorporated in the Cayman Islands, the Republic of Seychelles and Singapore, it is respected well in the cryptocurrency industry. The way I am seeing it is that Kucoin can be following the path taken by Binance and I am wondering if what can happen to CZ will also happen to Kucoin founders which is possible imprisonment and not just paying big venalities amounting to millions of dollars. North Korea is taking advantage of the crypto industry by instigating successful hackings...but USA is doing a lawfare in getting what they wanted.

Don't you think these sanctions are targeted? I hope they come out from this.. where would kucoin users go to? Any alternatives ?

Initially i used to blame SEC for their actions but it's clear they are fighting for users interest. Imagine if SEC hasn't detected the money laundering act been perpetrated by the Kucoin executives, we would have perhaps witness another black swan like FTX. Am even so much excited that the FTX founder is going to serve 25 years imprisonment.
This should serve as a lesson for those who may want to take a similar path in the future. As for where Kucoin Users will go, i think its best users look out for regulatory compliant cex like Bitget. Coinbase would have been a perfect stop but they are also in some kind of mess with SEC

This cex you mentioned, do they have a US licence cos you mentioned that they're regulatory compliant

[ABCbits]

It seems KuCoin got accused due to optional KYC/AML measure. I recall similar thing happened with Binance last year which made the former CEO resigned. Your opinion is greatly appreciated.

The truth is that you can't satisfy United state when your business involves anything that has to do with money, they don't want competition dwell among their circle and this is why you see them go after crypto exchanges that provide service for US. If reallik these exchanges, I would exit their market to avoid future problems.

But with how many cryptocurrency exchange and services remains in U.S., it shows potential profit is still attractive despite SEC and other agency pay more attention to them.

Has Counbase ever been accused of money laundering before? That's no because they wouldn't shame their own. The only time I think SEC was after coinbase was listing of coins that was regarded as security which were the likes the Solana, Matic and many more. This is why I don't blame crypto projects when they don't allow US citizens and that's better going forward.

Yes, with reason weak AML program. See https://www.theverge.com/2023/1/4/23538731/coinbase-fine-crypto-money-laundering-laws-new-york.

[CryptoTalisman]

Seems to me that SEC of USA is on a crusade to fight all big crypto exchanges inside and outside the country who are doing business within the mainland. Kucoin has been on the business for years and just like Binance it is one of the top exchanges we have around in terms of business volume handled and influence. Incorporated in the Cayman Islands, the Republic of Seychelles and Singapore, it is respected well in the cryptocurrency industry. The way I am seeing it is that Kucoin can be following the path taken by Binance and I am wondering if what can happen to CZ will also happen to Kucoin founders which is possible imprisonment and not just paying big venalities amounting to millions of dollars. North Korea is taking advantage of the crypto industry by instigating successful hackings...but USA is doing a lawfare in getting what they wanted.

Don't you think these sanctions are targeted? I hope they come out from this.. where would kucoin users go to? Any alternatives ?

Initially i used to blame SEC for their actions but it's clear they are fighting for users interest. Imagine if SEC hasn't detected the money laundering act been perpetrated by the Kucoin executives, we would have perhaps witness another black swan like FTX. Am even so much excited that the FTX founder is going to serve 25 years imprisonment.
This should serve as a lesson for those who may want to take a similar path in the future. As for where Kucoin Users will go, i think its best users look out for regulatory compliant cex like Bitget. Coinbase would have been a perfect stop but they are also in some kind of mess with SEC

This cex you mentioned, do they have a US licence cos you mentioned that they're regulatory compliant

Yea, they obtained that since 2020, you can read more about that here: https://www.bitget.com/support/articles/360040068632-Bitget-Obtains-The-US-MSB-License

[Faisal2202]

Its surprising to see that KuCoin would have involved in such crime, I will not ask why they waited this long to make a strong case against them, while according to news, they were involved into darknet money since 2017, there could be many possibilities to this the one would be, authorities got some strong evidence in there hands now and opened the case against them, some people might interpret this action of SEC to make profits in this bull market.

Overall, I don't think KuCoin is related to Binance's case in any way, as they were forced out, due to many of the reason, the main is, people used that exchange to send funds to Gaza and Palestine people, CMIIW.

What we have seen so far when it comes to the SEC lawsuits, Kucoin will have to pay for this or go out of business.
I didn't go into much detail based on which the fines were determined, but I would definitely say that it is strange that Kucoin gets a bigger fine than Binance, it is certainly a smaller exchange with less volume.

Really! I did not hear about this, how much Kucoin got fined, as of my knowledge Binance was fined over $ 4 billion dollars, and after reading some news I found that Kucoin was fined more than $2 billion dollars I might be wrong. If its true then how Kucoin's fine is bigger than the Binance fine.