KuCoin and its creators have been charged with severe offences in the United States, striking a blow in the company’s image when Damian Williams disclosed the charges. According to the US Attorney for the Southern District of New York, KuCoin and Chun Gan & Ke Tang violated basic AML, or anti-money laundering, regulations. It is anticipated that approximately $5 billion worth of funds were transferred through the network, including suspicious and illicit funds.
Williams described how KuCoin and its founders intentionally concealed information about the amount of users trading on the platform. As a result, they cannot help authorities uncover and eliminate criminal and corrupt financing schemes. Simply put, KuCoin and its founders should have opted to publish the number of users on the network to assist authorities in detecting criminal activity. They did, however, choose to suppress that information.
KuCoin was previously investigated after authorities discovered that it functioned without the fundamentals of KYC on its platform. Only in July 2023 did the site finally adopt the KYC feature and integrate it into its registration process.
The allegations are important, as they highlight an apparent oversight in KuCoin’s operations, which facilitates the transit of criminal funds.
KuCoin has a large customer base in the United States. It should have been clear that the platform followed key policies. They are now accused of violating critical laws and impeding the market. KuCoin has assured its consumers that there are no disruptions to its operations, and that the platform is functioning normally, with their funds secure as before. KuCoin has also indicated a commitment to complying with the laws and regulations of the countries in which it operates.
Members have reacted with conflicting sentiments. Some have said they will buy the engineered dip. Others wished for things to become obvious as soon as possible. Some have also mentioned withdrawal troubles on the platform.
KuCoin, which was founded in 2017, now houses over 600 cryptocurrencies and thousands of trade pairs. Its operations are supported in several nations, including the United States, the United Kingdom, and Russia, to name a few. It has a simple signup process, as detailed in our KuCoin Exchange review. It also provides more information on the platform’s Demo Trading account.
KuCoin is currently facing significant claims in the Southern District of New York. These are related to the Bank Secrecy Act and money laundering. If proven guilty, KuCoin will have trouble returning to the market. It will be necessary to prioritise the safety of clients’ funds.
Damian Williams named Chun Gan and Ke Tang in his lengthy statement for failing to follow AML rules.
