KuCoin pled guilty to federal charges today, acknowledging it operated an unlicensed money-transmitting business. Founders Chun Gan and Ke Tang will avoid prison but have to pay nearly $300 million in fines.
This legal battle played out in the Southern District of New York (SDNY), whose new US Attorney has vowed to stop crackdowns on the crypto industry. However, he claimed that this reprieve would only take place after cases like this reached a suitable resolution.
Criminal Charges Against KuCoin
KuCoin, one of the leading cryptocurrency exchanges, faced several legal challenges last year. In Q4 2024, Alameda Research filed a $50 million lawsuit against the exchange. It also received a formal warning from the Japanese government for operating without required licenses.
Today, in a much more serious episode, KuCoin pleaded guilty to criminal charges in federal court.
“We’re pleased to announce that KuCoin has reached a settlement with US authorities, a major step forward in our journey. This milestone brings clarity to our future and strengthens our commitment to innovation, compliance, and delivering value to our 38M+ users worldwide,” the exchange posted on X (formerly Twitter).
This legal battle began a little under a year ago when the US government charged the firm with a “multibillion-dollar criminal conspiracy.” Specifically, KuCoin was accused of failing to comply with financial compliance regulations, charges which include significant jail time.
Thanks to their plea, KuCoin founders Chun Gan and Ke Tang will not suffer the full impact of these charges. US District Judge Andrew Carter sentenced the firm to pay nearly $300 million in fines and forfeitures.
However, although these executives will not go to prison, their company still could be in dire straits. The exchange will have to exit the US market for two years.
“Peken Global Limited, which has operated the KuCoin cryptocurrency exchange, pled guilty to operating an unlicensed money transmitting busine
