- Crypto exchange KuCoin pleads guilty to operating without a license in a DOJ settlement.
- Founders Chun Gan and Ke Tang exit, forfeiting $2.7 million each under deferred prosecution.
- New leadership under BC Wong aims to enhance regulatory compliance globally.
Cryptocurrency exchange KuCoin has pleaded guilty to operating an unlicensed money transmission business in a settlement with the U.S. Department of Justice (DOJ). The resolution brings major changes to its leadership and operational structure.
The settlement follows charges against KuCoin and its Chinese founders, Chun Gan and Ke Tang, who were accused of failing to implement required anti-money laundering programs while operating without proper licensing. Both founders have accepted deferred prosecution agreements and will each forfeit $2.7 million as part of the resolution.
In a leadership transition, Chun Gan announced his complete withdrawal from all company positions. He described the settlement as a “favorable outcome” that dismisses charges against both founders upon meeting specific conditions.
Similarly, Ke Tang, also known as Eric, will cease involvement in KuCoin’s management and operations, as confirmed by prosecutors. Gan indicated his intention to pursue new blockchain ventures, expressing continued faith in the technology’s potential despite stepping away from KuCoin.
This resolution marks a pivotal milestone in KuCoin’s journey. As we move forward, we remain focused on fostering a more secure and sustainable financial future, driving innovation, and contributing to the responsible global adoption of cryptocurrency.
The exchange will now operate under the leadership of BC Wong, a Singaporean executive with extensive legal expertise serving as KuCoin’s Chief Legal Officer. This change signals the company’s new focus on regulatory compliance and global expansion within permissible markets.
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KuCoin’s official announcement emphasized major improvements to its compliance framework over the past two years. These improvements include expanding their compliance team, securing licenses in key markets, and implementing stricter security standards to protect user assets. The exchange maintains that its operations in non-restricted markets remain unaffected by the U.S. settlement.
Looking forward, the exchange has outlined plans to continue its operations under enhanced regulatory oversight. The company’s statement stressed its dedication to user protection, platform integrity, and responsible growth in the cryptocurrency sector.
