- Federal prosecutors have charged KuCoin and two of its founders with operating an unlicensed money-transmitting business and violating the Bank Secrecy Act
- Allegations include deliberate failure to maintain adequate anti-money laundering protocols and facilitating the laundering of $5 billion
- Gan and Tang, both Chinese citizens, face charges carrying a maximum sentence of five years in prison, while associated entities may face up to 10 years
KuCoin and two of its founders have been charged by federal prosecutors with operating an unlicensed money-transmitting business and violation of the Bank Secrecy Act. The charges, filed against the company as well as Chun Gan and Ke Tang, stem from alleged deliberate failure to maintain adequate anti-money laundering (AML) protocols. The indictment further accuses Gan and Tang of actively concealing the presence of US customers to evade compliance with AML and Know Your Customer (KYC) regulations.
KuCoin Failed to Implement KYC and AML
KuCoin, founded in 2017,