U.S. Attorney Damian Williams said conspiracy charges against KuCoin and two executives should warn other crypto exchanges that they cannot serve U.S. customers without following U.S. laws. An indictment in Manhattan federal court said the company and its founders tried to conceal the existence of its U.S. customer base.
In December, New York Attorney General Letitia James secured a payout of more than $22 million from KuCoin to refund $16.7 million to over 150,000 New York investors and provide New York state with over $5.3 million. KuCoin was also required to cease New York operations after falsely representing itself as a crypto exchange without registering as a securities and commodities broker-dealer, James said.
Williams said in a release that KuCoin, formed in 2017, “took advantage of its sizeable U.S. customer base to become one of the world’s largest cryptocurrency derivatives and spot exchanges, with billions of dollars of daily trades and trillions of dollars of annual trade volume.”
He said the company deliberately chose to flout U.S. laws designed to help identify and eliminate crime and corrupt financing schemes on financial platforms. As a result, authorities said, the company was used as a vehicle to launder large sums of proceeds from criminal malware, ransomware and fraud schemes.
KuCoin failed to implement even basic antimoney laundering policies as it let customers process over $4 billion of suspicious and criminal funds as KuCoin operated in the shadows of the financial markets and provided a haven for illicit money laundering, Williams said.
This story is from the March 29, 2024 edition of AppleMagazine.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the March 29, 2024 edition of AppleMagazine.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
APPLE BECOMES FIRST TARGET OF EU'S NEW DIGITAL COMPETITION RULES AIMED AT BIG TECH
European Union regulators this week leveled their first charges under the bloc’s new digital competition rulebook, accusing Apple of preventing app makers from pointing users to cheaper options outside its App Store.
THE SUPREME COURT RULES FOR BIDEN ADMINISTRATION IN A SOCIAL MEDIA DISPUTE WITH CONSERVATIVE STATES
The Supreme Court this week sided with the Biden administration in a dispute with Republican-led states over how far the federal government can go to combat controversial social media posts on topics including COVID-19 and election security.
JUDGE PUTS $30 BILLION VISA, MASTERCARD SETTLEMENT ON HOLD, IN SIGNAL OF LIKELY REJECTION
A federal judge said she’s not likely to approve the $30 billion settlement between the payment processing giants Visa and Mastercard and the merchants who say they’ve overpaid on swipe fees.
STILL NEED YOUR LANDLINE? CALIFORNIA REGULATORS JUST STOPPED AT&T FROM PULLING THE PLUG
California’s Public Utilities Commission rejected AT&T’s application to stop providing landlines and other services in areas where there is no other option.
PEACE (AND PIECES) OF MIND 'INSIDE OUT 2'
Sequels have been a touchy subject when it comes to Pixar, but it’s hard to deny the natural premise of “Inside Out 2.”
SOUTHWEST AIRLINES SAYS A KEY MEASURE OF PRICING POWER WILL BE WEAKER THAN EXPECTED IN 20
Southwest Airlines, already under pressure from a hedge fund for disappointing financial results, said Wednesday that a key revenue ratio will be weaker than expected because of changes in how consumers book travel.
GM BRINGS IN NEW CEO TO STEER TROUBLED CRUISE ROBOTAXI SERVICE WHILE WAYMO RAMPS UP IN SAN FRANCISCO
General Motors this week named a veteran technology executive with roots in the video game industry to steer its troubled robotaxi service Cruise as it tries to recover from a gruesome collision that triggered the suspension of its California license.
CAR DEALERSHIPS ARE BEING DISRUPTED BY A MULTI-WEEK OUTAGE AFTER CYBERATTACKS ON SOFTWARE SUPPLIER
Car dealerships across North America have faced major disruptions.
ROBINHOOD CEO DISCUSSES THE BROKERAGE'S EVOLUTION LEADING UP TO ANOTHER RIDE ON THE MEME STOCK WAVE
Meme stocks like GameStop are hot again, reviving memories of early 2021 when they turned into a craze that ended up burning many investors along with Robinhood Markets.
FACIAL RECOGNITION STARTUP CLEARVIEW AI SETTLES PRIVACY SUIT
Facial recognition startup Clearview AI reached a settlement in an Illinois lawsuit alleging its massive photographic collection of faces violated the subjects’ privacy rights, a deal that attorneys estimate could be worth more than $50 million.
