News

KuCoin Faces Charges For AML Violations In The US

KuCoin, a prominent player in the cryptocurrency exchange arena, has found itself embroiled in legal proceedings with US prosecutors over alleged violations of anti-money laundering (AML) regulations.

The exchange, known for its substantial daily trading volume exceeding $2 billion, has been accused of failing to comply with American AML rules, as revealed by federal prosecutors in Manhattan.

According to prosecutors, KuCoin and its founders have been charged with willfully neglecting to establish and uphold a robust program aimed at preventing illicit activities on the platform since its inception in September 2017.

Specifically, the exchange purportedly lacked adequate measures to prevent the misuse of its platform for illicit purposes, including the financing of terrorism. Furthermore, KuCoin allegedly neglected to implement sufficient identity verification procedures for its clients and failed to report suspicious transactions.

US Attorney Damian Williams emphasized the severity of the allegations, asserting that KuCoin had processed over $5 billion in suspicious and criminal funds, underscoring the magnitude of the purported violations.

KuCoin Responds, Reassuring Users Of Safety

In response to the accusations, KuCoin issued a statement reassuring users of the exchange’s operational integrity and the safety of their assets. The exchange acknowledged the ongoing investigations and indicated that it is actively working with legal counsel to address the matter comprehensively. 

Related Post

However, the announcement of the charges has had a tangible impact on KuCoin’s native token, $KCS, which experienced a sharp decline of 14% following the news.

As the legal proceedings unfold, the cryptocurrency community awaits further developments regarding KuCoin’s compliance efforts and the potential ramifications of the charges on the exchange’s operations and reputation.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!

Image Source: releon003/123RF // Image Effects by Colorcinch

Will Izuchukwu

Will is a News/Content Writer and SEO Expert with years of active experience. He has a good history of writing credible articles and trending topics ranging from News Articles to Constructive Writings all around the Cryptocurrency and Blockchain Industry.

Share
Published by
Will Izuchukwu

Recent Posts

Cheems Surge On BSC Network: A Rising Star With Growing Market Value

The Cheems token on the Binance Smart Chain (BSC) is gaining significant momentum, surging by…

3 hours ago

Lester Token Crashes 40% Following Official Announcement

The value of $LESTER plummeted by 40% in the past 24 hours, leaving its market…

3 hours ago

From $30K To Millions: The Wild Journey Of $Quant And Xiaohaige’s Memecoin Stunts

In a bizarre turn of events, a young live-streamer known as Xiaohaige created the memecoin…

3 hours ago

Whale “convexcuck.eth” Makes Bold $CVX Move, Nets Significant Profit Amid Price Surge

The crypto whale known as "convexcuck.eth" has made waves in the DeFi world, spending $2…

3 hours ago

$ELIZA Token Launch Marred By Insider Trading Allegations

The launch of $ELIZA, a token introduced by Andreessen Horowitz (a16z) partner @shawmakesmagic, has sparked…

3 hours ago

Cardano’s Rally Highlights Diverging Moves Among Investors

Cardano ($ADA) has been making waves in the crypto market, breaking away from the altcoin…

3 hours ago